4.4 Million Children Eligible for Child Benefit Payments at Risk of Exclusion
The child benefit payments, set to begin on July 15, requires typical non-filers to register with the IRS.
WASHINGTON, D.C. — 4.4 million children eligible to receive monthly payments as part of the expanded child tax credit in the United States are at risk of missing out on the first check.
The expanded child tax credit (CTC), passed as part of the American Rescue Plan in March, will send eligible American parents payments of $250 – $300 per child each month from the Internal Revenue Service on July 15.
The IRS estimates 88% of children will receive the payments, as of May 17. According to the last CPS ASEC, around 2 percent of children have parents who earn too much to be eligible for the CTC.
The CPS data indicates that about 10 percent of eligible children, about 4.4 million, will not receive CTC payments because the payments are based on their most recent tax filings. This means the children of households that don’t typically file taxes or have changed permanent addresses are at risk of missing out.
The IRS has confirmed there will be a web portal for Americans at risk of missing the benefits to notify them of their eligibility available some time in late June, but has not committed to a specific date for the portal’s release to the public.
With “late June” as the only indicator for the web portal’s launch, parents of these 4.4 million Americans may have less than 3 weeks to use the portal and make their eligibility for the child benefit known. This could prove especially challenging for those without internet access.
“We should not assume that if the government sets up a program to dispense cash, that there will automatically be open hands on the other side,” said Greg Nasif, political Director for Humanity Forward. “We need to make sure all parents receive the benefits they’re owed, and we need the IRS to be proactive in reaching these parents.”
A majority of Americans are unaware of the benefit according to a recent poll conducted by Data For Progress. 53% of the poll’s respondents expressed knowing little or nothing about the monthly payments, which are expected to cut child poverty in half.
Without guaranteeing that all eligible households will receive the payments, however, the benefit may not achieve the high standard that it is projected to reach.
Humanity Forward is a 501(c)(4) non-profit organization dedicated to building bipartisan coalitions to advance the economic interests and policy priorities of the American people.
If you are interested in covering Humanity Forward’s work advocating for direct cash relief, or to hear what we have to say about this one-in-a-half-century policy revolution, please contact our press secretary Greg Nasif at press@movehumanityforward.com or 804-742-2076.
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