Source: United States Senator for Michigan Debbie Stabenow
The American Rescue Plan Expanded Child Tax Credit is Projected to Cut Child Poverty in Half
Thursday, July 08, 2021
U.S. Senator Debbie Stabenow (D-MI) joined with child advocates to highlight tax cuts for working families included in the American Rescue Plan. Senator Stabenow was a leader 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. She was joined by Sonja Forte, the Executive Director of Baxter Community Center, Candance Cowling, the Executive Director of Family Futures, Jayme Vosovic, the West Michigan Community Engagement Specialist at the Michigan League of Public Policy and Summer Wright, a recipient of the Child Tax Credit.
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.
“Families are in the process of getting back on their feet and any boost that they may be able to get in doing so, is a win for everyone. That’s what this Tax Credit is for so many – a needed boost. I know for many of the families that come to Baxter for various services, this extra money will create a bit of relief,” Sonja Forte, Executive Director of Baxter Community Center
“Parents are being forced to make impossible choices: earning an income to support their families or sacrificing employment to be their sole childcare provider. This choice is being made during their children’s most important time of development: the earliest years. We at Family Futures see first-hand how families throughout our community are facing these challenges more than ever. When a parent can’t find quality, affordable child care because it is financially out of reach, the stress is felt by everyone in the family. When a parent has to give up on the workforce, the repercussions are felt by all of us,” said Candace Cowling, Executive Director of Family Futures.
“Raising children is hard, important work—and it’s even harder when families don’t have enough money. The expanded Child Tax Credit will support more families with lower—or even no—incomes, fueling an equitable recovery and significantly reducing child poverty,” said Jayme Vosovic, West Michigan Community Engagement Specialist at the Michigan League of Public Policy.
“Both as a mom and as a nonprofit leader, I’m grateful for and excited about the Child Tax Credit. Not only will it help some of the families I serve rise out of poverty, but it will help my family stay financially secure too,” said Summer Wright, recipient of the Child Tax Credit.
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.
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