TaxTimeHub.org
Child Tax Credit Changes Affect Millions of Families this Year
Organizations Supporting LMI Families Can Help Ensure They See Benefits
Passed in March 2021, the American Rescue Plan Act (ARPA) expands several tax credits for LMI individuals and families for the 2021 tax year, including the child tax credit (CTC).
In addition to expanding eligibility for the CTC and the credit amount, the law creates periodic payments in the second half of 2021 to pay eligible families half of their estimated child tax credit for tax year 2021. These payments mean millions of LMI families will receive hundreds of dollars in extra income in each month from July to December 2021. Families who have not signed up for the CTC or filed taxes in the past can still sign up, even after payments have begun.
For example, a family with two children under six, making less than $75,000 in 2020 will receive $600 per month for the second half of the year. Learn more about the Child Tax Credit.
Organizations across all sectors should get the word out to LMI families about these payments and ensure they are prepared to receive them.
Our Vision
- Ensure major organizations who support LMI families, especially the private sector, raise awareness and maximize effectiveness of CTC payments.
- Every eligible American is aware that they will be receiving and is prepared to receive these periodic payments, which extend until the end of 2021.
What This Means For American Families
Many families anticipate and count on tax refunds, using them to pay down debt, build up savings, and make deferred purchases. However, because they are only paid out once a year, filers must wait until the next tax filing season to receive support.
The advance CTC payments will provide the millions of eligible families with a steadier stream of support throughout the year and will mean that families and individuals do not have to wait until the 2022 tax filing season to benefit from the expanded payments.
Download Our Messaging PDF
Use our resources, developed through message testing with eligible Americans, to communicate how to receive the maximum advance CTC payments possible and plan how to use them when they arrive. We will update this page with more information and resources as we learn more about the payments’ implementation.
Use the form below to access our recommended messaging and receive important updates.
About Tax Time Hub
Commonwealth, Neighborhood Trust Financial Partners, and SaverLife are working to create a rapid response coalition to ensure the American Rescue Plan Act (ARPA) benefits as many low- and moderate-income Americans as possible. We’re asking organizations, especially those that deliver financial services and tax filing support to impacted families, to join us in reaching this goal. We plan to:
- Build awareness of ARPA provisions among LMI Americans and the organizations that serve them.
- Enable advocacy by individuals and organizations, including by letting people share what tax credits mean for them.
- Connect families to trusted financial resources and services.
