Non-filers are eligible for increased benefits and should use THIS tool to sign up

MALDEN, MA – The American Rescue Plan included a historic expansion of the Child Tax Credit to help families recover from the COVID-19 pandemic. Low-income families, including those who are not required to file taxes, can use the  simple Child Tax Credit signup tool to notify the IRS and receive funds. 

“Many families in Massachusetts and across the country need help to recover from this pandemic, but don’t know they qualify for the Enhanced Child Tax Credit,” said Assistant Speaker Clark. “In the Fifth District alone, over 12,000 children are eligible for millions of dollars in assistance, but that money will go unused if families don’t sign up with the IRS. I encourage residents to reach out to my office if they have questions or need assistance securing the support they deserve. As we promised to families when the American Rescue Plan was signed into law, help is here!” 

The IRS recently released data showing over 2.2 million children may qualify for the Enhanced Child Tax Credit but not receive funds due to being unclaimed on recent tax returns. According to IRS data, this includes an estimated 12,656 children in MA-5. Revere, Malden and Framingham are home to the most unclaimed potential Enhanced Child Tax Credits in the 5th Congressional District.

Parents who filed a 2019 or 2020 tax return, or used the Non-Filers Tool to claim the first stimulus check, will not need to take any further action and the IRS will automatically send their Enhanced Child Tax Credit monthly payment. However, for parents who did not file a 2019 or 2020 tax return, and did not use the Non-Filers Tool for a stimulus check, action is required to claim their Enhanced Child Tax Credit. They can use the Non-Filers Tool to register for the credit. If a parent chooses not to do this, they will still be able to file a 2021 tax return and claim the full amount as a tax credit.

Nearly all eligible families – roughly 39 million households, covering almost 90 percent of children in the United States –  should begin seeing their monthly payments automatically after July 15th with no further action required. Within MA-5: 

  • 60.6% of children will gain eligibility from expanded and improved Child Tax Credit — 94,300 children total will receive tax credit.
  • The average benefit for 33,800 households is $2,300. 
  • The expanded and improved Child Tax Credit lifts 5,400 children out of poverty. Families with children in poverty will receive $3,700 on average.

For more information, reach out to Assistant Speaker Clark’s office by email or call 617-354-0292.

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BACKGROUND: The Enhanced Child Tax Credit was passed as part of the American Rescue Plan and provides increased funds to parents compared to what they would receive through the traditional Child Tax Credit. The maximum Enhanced Child Tax Credit for a child under 6 is $3,600, distributed in monthly installments of $300 per child and the remainder on the parents’ 2021 tax refund. Parents of children over six will receive a maximum of $3,000 per child, or $250 per month.

The income limit for the Enhanced Tax Credit is $75,000 for a single parent and $150,000 for a married couple, with prorated amounts for parents making up to $95,000/$170,000 respectively. Parents with incomes above those maximum thresholds will still be eligible for the traditional Child Tax Credit of $2,000 per child for a single parent with an annual income of up to $200,000 and a married couple up to $400,000.