Families on Thursday began receiving the first monthly payments from a dramatically expanded child tax credit, a key part of the almost $2 trillion American Rescue Plan.
Advocates estimate it will help lift 250,000 children out of poverty in New York alone. It also could improve how students perform in school, as a host of research into anti-poverty programs shows that giving more money to families can help lift learning.
With the child tax credit, families receive up to $300 a month for each child under 6 years old, and $250 a month for those ages 6 to 17. That is an increase of $1,600 a year for younger children, and $1,000 a year for older children. Most importantly, the credit was expanded to include children whose families make too little to file taxes. The payments will continue through December, with the rest of the benefit paid out when families file taxes in 2022.
Studies of existing tax credit programs, on the other hand, show that giving families more money can increase students’ test scores and likelihood of finishing high school and college.
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Written by: Christina Veiga
July 15, 2021
