In the News

SPRINGFIELD — Meeting with a 4- and 5-year-olds at Square One in Springfield on Monday, U.S. Rep. Richard E. Neal said it’s these children’s families who will be most impacted by the expansion of the Child Tax Credit under the American Rescue Plan.

“I think this addresses one of the most stubborn parts of economic reality in America, and that’s childhood poverty,” he said.

In Neal’s 1st Congressional District, made up of 87 cities and towns, 85.8% of children will receive the tax credit, with the average benefit for qualifying households totaling $2,800 over six months. The credit is expected to lift 8,300 children in central and Western Massachusetts out of poverty. The monthly payments will begin arriving for eligible families in July, Neal said.

“Families will not have to wait until tax filing season to be able to draw up the benefit,” he said. “This is pretty extraordinary. This is going to provide a lot of relief to a lot of people who during the pandemic were living day to day, never mind week to week. ”

Neal said he wanted to make the formal announcement at Square One because of its long history of serving families in the community. The organization serves 1,500 families in Greater Springfield.

Square One president and CEO Dawn DiStefano said many families still can’t believe this will happen.

“I think when you live day by day it can oftentimes be unbelievable until you actually see it happen, and that’s what many of our families are doing,” she said. “We are looking forward to loosening some of that stress families are under and moving forward with an optimistic and positive approach.”

Many families have expressed concerns about what the tax credits will mean for existing services they receive, be it child care or housing vouchers. DiStefano said early childhood education advocates have made that concern clear to legislators.

“It’s a multipronged effort. The Massachusetts Department of Early Education and Care is aware of what Congress is doing and so in turn they are looking at their income thresholds and they are redoing their tables,” she said. “We all are working together because we don’t want to see folks in December when they have amassed more resources all of a sudden lose their Section 8 (housing voucher) or child care voucher.”

Currently there is a moratorium on child care fees for programs like those offered by Square One. The Department of Early Education and Care has covered those costs throughout the pandemic. However, in the coming months families will have to start paying those fees again.

“We will be working with our families as their assets increase to get them ready for those fees to return,” DiStefano said.

Neal said that while while the Child Tax Credit expansion is a temporary measure, he is looking to make it a permanent benefit for American families.

“The president proposed a five-year extension, but I am going to push for permanency,” he said, referring to President Joe Biden’s State of the Union speech in May. “I really think he is open to it. ... He is entirely conversive on this issue.”

The following are details on the Child Tax Credit provided by Neal’s office. For more information, visit irs.gov/childtaxcredit2021.

How much is the child tax credit expansion from the American Rescue Plan?

The American Rescue Plan expanded the Child Tax Credit up to $3,600 per child for children ages 0-5 and $3,000 per child for children ages 6-17.

The American Rescue Plan also authorized advance monthly payments of the Child Tax Credit through December 2021. Beginning in July and running through December, qualifying families can get up to:

• $300 a month per child for children ages 0 to 5
• $250 a month per child for children ages 6 to 17

Families will get their remaining expanded Child Tax Credit when they file their 2021 tax return.

Who qualifies?

Families will qualify for a full credit if their income is below $75,000 for single filers, $112,000 for people filing as head of household, or $150,000 for people who are married and filing jointly.

How do I get my payment?

• If you’ve filed tax returns for 2019 or 2020, or if you signed up to receive a stimulus check from the Internal Revenue Service, you will get this tax relief automatically. You do not need to sign up or take any action.
• Families who did not file a tax return for 2019 or 2020 and who did not use the IRS Non-filers tool last year to sign up for the Economic Impact Payments, should go online and use the IRS Child Tax Credit Non-filer Sign-up Tool to sign up.
• Families who got their refunds from the IRS through direct deposit will get these payments in their bank account around the 15th of every month until the end of 2021. People who don’t use direct deposit will receive their payment by mail around the same time.
• Families will be able to determine their eligibility, check the status of their payments and more at irs.gov/childtaxcredit2021 later this month.