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U.S. NEWS Wednesday 9 February 2022

Money on the table: child credit $ available via tax returns

By JOSH BOAK duced child poverty by an
Associated Press estimated 40%.
The Biden administration Yellen said research sug-
wants families with children gests that the payments
to know that there is rough- are among the most prom-
ly $193 billion waiting for ising policies for combat-
them — all they need to do ing poverty, highlighting
is file their taxes to claim it. recent research to suggest
That estimated total is what that the money was linked
remains of the expanded to higher brain activity in
child tax credit, and the ad- the babies of poor moth-
ministration is concerned ers.
that some of those most "There is very little equivo-
in need of the assistance cation that these policies
may be the least likely to lift up the lives of millions of
get what is due to them. people, and, in so doing,
President Joe Biden in- lift up the country," Yellen
creased the payments said.
and expanded who was Several lawmakers and
eligible as part of his coro- nonprofits are taking part Treasury Secretary Janet Yellen delivers remarks encouraging Americans to take advantage of
navirus relief package. in the outreach, and there tax credits, including the expanded Child Tax Credit and Earned Income Tax Credit, in the South
While most families already are plans to hold events Court Auditorium on the White House campus, Tuesday, Feb. 8, 2022, in Washington.
received half of the credit in all 50 states and Puerto Associated Press
as monthly payments last Rico during the tax filing working. But critics say that which ensures that poorer er people taking jobs that
year, they'll lose out on the season. Yellen noted that making the credits larger families qualify for the en- pay and creates a drag on
remaining balance unless nonprofits are often better and fully refundable — tire benefit — leads to few- the economy. q
they file their taxes. at reaching out to poorer
Vice President Kamala Har- populations.
ris, Treasury Secretary Janet As part of the $1.9 trillion
Yellen and White House se- coronavirus relief package,
nior adviser Gene Sperling Biden increased the child
held a virtual event Tues- tax credits to $3,600 annu-
day to encourage people ally for each child aged
to send their tax forms to 5 or under and $3,000 for
the IRS, including those those who are ages 6 to
whose incomes are so low 17. The government began
that they might not have to send the payments out
traditionally filed. on a monthly basis start-
Harris said that families ing last July, meaning that
should go to childtaxcredit. there are six months worth
gov to check their eligibil- of payments waiting to be
ity. The tax filing deadline is claimed by people filing
April 18. their taxes.
"The truth is there are peo- The administration esti-
ple across our nation who mates that roughly 58 mil-
work hard every day and lion households would
still struggle to get by and qualify for the credit, which
it should not be this way average $3,300 and could
in our country," Harris said. be used to offset an exist-
"You still need to file your ing tax bill or be paid out as
taxes. That is the only way a refund.
to receive the second half Workers without children
of what you are owed." could also get additional
The public push is occur- help this tax season if they
ring at a critical juncture file. The relief package
for both the U.S. economy nearly tripled the earned
and the child tax credit income tax credit for work-
program. Inflation is run- ers without dependent chil-
ning at a nearly 40-year dren, meaning that 17 mil-
high, meaning that the ad- lion people could receive
ditional money from the credits worth $1,500.
credit will help offset the The expanded child tax
costs of food, gasoline and credits were seen as slash-
other goods as the U.S. is ing child poverty to the
still emerging from the pan- lowest levels on record.
demic. But efforts to renew A recent analysis by re-
the expanded credits for searchers at Washington
another year have been University in St. Louis and
blocked in the Senate, Appalachian State Uni-
making it important for ad- versity found no evidence
vocates to demonstrate that the monthly payments
how the credits have re- caused parents to stop