The American Rescue Plan expanded Child Tax Credit, is Projected to Cut Child Poverty in Half
SOUTHFIELD – U.S. Senator Debbie Stabenow (D-MI) and Representative Brenda Lawrence (MI-14) joined with child advocates to highlight tax cuts for working families included in the American Rescue Plan.
Senator Stabenow and Representative Lawrence were leaders in the effort to include a historic expansion of the Child Tax Credit in the American Rescue Plan. Combined with other parts of the Rescue Plan, it is projected to cut child poverty in the United States by half. They were joined by Gilda Jacobs, Executive Director of the Michigan League of Public Policy, and Nicole Fuller, a parent of members of the Metro Detroit Youth Clubs.
Michigan families will begin to receive monthly Child Tax Credit payments on July 15th. Monthly payments will be up to $250 for each child 6 to 17 years old and $300 for each child under age 6. In total, most Michigan families will receive $3,000 for each child ages 6 to 17 years old and $3,600 for each child under age 6. Most families will begin receiving monthly Child Tax Credit payments without any further action required. If families have not filed taxes for 2019 or 2020 or did not previously claim Economic Impact Payments, they must sign up to receive monthly Child Tax Credit payments through a new online IRS tool at www.childtaxcredit.gov.
“This pandemic has been tough for everyone. But families with children have been especially hard hit. This tax cut helps those who need it most to have additional resources to care for their children. It will improve the lives of millions of Michigan children, help moms and dads pay for child care and other essentials and allow them to successfully return to work. This is a very important part of the American Rescue Plan,” said Senator Stabenow.
“The Child Tax Credit will be transformational for Michigan families in the 14th District and across the state. Too many Americans have been struggling to make ends meet, and this is a lifeline for those that need it the most,” said Rep. Lawrence. “More than 40,000 households, covering 88 percent of all children, in the 14th District will benefit from the expanded and improved Child Tax Credit. I’m proud to have worked with Sen. Stabenow, and all my Democratic congressional colleagues, to fight for this provision in the American Rescue Plan and deliver relief for Michiganders.”
“These CTC improvements not only serve to counter the physical and economic impact of the pandemic, but also beat back the plague of child poverty and economic insecurity,” said Gilda Z. Jacobs, President and CEO for the Michigan League for Public Policy. “The increased Child Tax Credit will benefit nearly all kids in the state and stands to cut child poverty almost in half. But while these changes are transformational, they are still only temporary, and we echo Sen. Stabenow’s call to make these CTC expansions permanent.”
In Michigan, it is estimated that the Child Tax Credit expansion will benefit more than 1.9 million children under age 18. For more information or to sign up for benefits, visit www.childtaxcredit.gov.