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On Tuesday, Foster’s Daily Democrat wrote about how the expanded child tax credit in the American Rescue Plan will benefit Granite State families. Democratic elected officials and advocates like Senator Hassan, Congressman Pappas, State Senator Rebecca Perkins-Kwoka, and Clifton West, executive director of Black Lives Matter Seacoast all spoke in support of the expanded tax credit which will benefit the lives of about 200,000 children across New Hampshire.
Key Points:
Advocates and elected officials say the monthly child tax credit checks of $250 or $300 per child coming to most parents in New Hampshire, Maine and across the nation this month will greatly help financially strained and struggling families.
"This is a big deal for this country, something that is really going to move the needle in terms of affordability for a lot of families," said Congressman Chris Pappas, D-NH, who attended an event at the Children's Museum of New Hampshire in Dover Monday. "These direct payments will help families of varying income levels. We all know that the struggles that our families are facing did not come about just because of COVID, but they were worsened by it."
“The $1.9 trillion American Rescue Plan approved by Congress and signed by President Joe Biden earlier this year increases the child tax credit for this tax year so families will get a $3,600 credit in 2021 for children younger than six and $3,000 per child ages 6-17. This replaces the old $2,000 credit that ended once a child turned 17.”
“The payments will account for nearly 200,000 children across New Hampshire, including 103,900 in the 1st Congressional District, Pappas estimated.”
"Expanding this program is one thing that's on the table as we discuss the American Families Plan," Pappas said. "I think there will be a lot of conversations happening in Washington in the next couple of months about some big issues, but we can't ignore the needs of our workforce and the needs of our families. ... Making the child tax credit expansion permanent is something that's worthy of conversation and hopefully we'll be able to support."
Foster’s Daily Democrat: Most parents to get $250 or $300 monthly payments per child. Here's how it works.
By Megan Fernandes
Advocates and elected officials say the monthly child tax credit checks of $250 or $300 per child coming to most parents in New Hampshire, Maine and across the nation this month will greatly help financially strained and struggling families.
The $1.9 trillion American Rescue Plan approved by Congress and signed by President Joe Biden earlier this year increases the child tax credit for this tax year so families will get a $3,600 credit in 2021 for children younger than six and $3,000 per child ages 6-17. This replaces the old $2,000 credit that ended once a child turned 17.
The child tax credit plan will distribute half of the credit directly to families earning up to $150,000 per couple through monthly payments over six months, starting July 15, so they don't have to wait until filing their tax returns next year to receive the relief.
"This is a big deal for this country, something that is really going to move the needle in terms of affordability for a lot of families," said Congressman Chris Pappas, D-NH, who attended an event at the Children's Museum of New Hampshire in Dover Monday. "These direct payments will help families of varying income levels. We all know that the struggles that our families are facing did not come about just because of COVID, but they were worsened by it."
The payments will account for nearly 200,000 children across New Hampshire, including 103,900 in the 1st Congressional District, Pappas estimated.
Here's what the community should know about the program:
Who qualifies for the advance payments
Parents with kids under 18 who earn up to $75,000 and couples filing their tax returns jointly who earn up to $150,000 will receive the full $3,600 credit per child under the age of 6 and $3,000 per child ages 6 to 17, according to Pappas and the IRS.
Families will receive part of the credit in 2021 through advance payments of up to $250 per month for each qualifying child age 6 to 17 at the end of 2021 or $300 per month for each qualifying child under age 6 at the end of 2021.
Individuals and couples who earn more than those respective limits will have their credits reduced by $50 for every $1,000 of adjusted gross income earned above the limits.
When to expect payments
The monthly child tax credit payments will be delivered to families beginning July 15 and continue for six months, via direct deposit for people who have received tax refunds or past stimulus payments via direct deposit. Some families may receive payments in the mail.
From child care to school reopenings, $1.9T COVID relief package gives a financial lift to America's struggling families
The IRS automatically enrolled families based off their 2019 or 2020 tax return, or information entered into the non-filer tool on IRS.gov in 2020 to register for Economic Impact Payments.
There is no further action required unless families did not file taxes in 2019 or 2020, and did not register for Economic Impact Payments last year. They can sill sign up through the IRS website, using the non-filer sign-up tool.
The impact of the payments
"The expansion of this tax credit will make a meaningful difference in the lives of New Hampshire children,” said Sen. Maggie Hassan, D-N.H. “It's an important way to lift up these kids and their families -- and we know that when families are thriving, it has a ripple effect throughout our economy. It's a win-win for everybody."
It was previously reported the payments are expected to lift 8,000 New Hampshire children and 10,000 Maine children out of poverty, as well as provide relief to the families of approximately 222,000 New Hampshire children (87%) and 229,000 Maine children (91%), according to the Center on Budget and Policy Priorities. Nationally, the CBPP projects the child tax credit provisions will lift 4.1 million children above the poverty line, lift 1.1 million children out of deep poverty and cut the remaining number of children in poverty by more than 40%.
A 'buffer' for families
Amanda Sears, director of Campaign For A Family Friendly Economy, said in her role she speaks to families across the state about challenges they are facing, and unexpected expenses like a car repair are a big problem.
"Pre-pandemic, 40% of average Americans couldn't afford an unexpected expense of $400," Sears said. "One week into pandemic, one week of people being without work, we started seeing long lines at food pantries. I think that showed that the resilience that we thought maybe families had isn't there, and that families really are more-so living paycheck to paycheck."
Clifton West, executive director of Black Lives Matter Seacoast, is a new father to a nearly 3-month-old and step-father to two young children. West said that many families like his are working overtime living paycheck to paycheck. He said the monthly payment can allow families more financial freedom to make ends meet.
"I see this as a form of economic equality for parents of color, and parents who live below or near the poverty line," West said. "This past year was probably the toughest financial year that we had in our house. I know that having a buffer will help my family tremendously, and allow my wife to go back to work soon."
State Sen. Rebecca Perkins Kwoka, a Portsmouth Democrat, said that affording childcare and accessibility of childcare is one of the biggest challenges for working families. Perkins Kwoka said that these payments will "give families just a little bit of breathing room" financially.
Will the payments continue in 2022?
Pappas said he's hopeful the pilot-program method of distributing tax credits throughout the year will help families budget and attend to unexpected expenses with the federal support coming in on a monthly basis. But it's too soon to tell, he said. The current legislation is only for 2021.
Congressman Chris Pappas, D-NH, speaking Monday, July 12, 2021 at the Children's Museum of New Hampshire in Dover, says he's hopeful the expansion of the child tax credit could be made permanent.
"Expanding this program is one thing that's on the table as we discuss the American Families Plan," Pappas said. "I think there will be a lot of conversations happening in Washington in the next couple of months about some big issues, but we can't ignore the needs of our workforce and the needs of our families. ... Making the child tax credit expansion permanent is something that's worthy of conversation and hopefully we'll be able to support."
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