Rhode Island’s Congressional Delegation held a press conference with the United Way of Rhode Island on Monday to encourage eligible Rhode Islanders to take advantage of the expanded, improved Child Tax Credit (CTC) that Congress established through the American Rescue Plan earlier this year. Eligible Rhode Islanders can take advantage of the Child Tax Credit when filing their federal income taxes, which are due one week from today, May 17th.

The expanded credit means:

• The credit amounts will increase for many taxpayers.
• The credit for qualifying children is fully refundable, which means that taxpayers can benefit from the credit even if they don’t have earned income or don’t owe any income taxes.
• The credit will include children who turn age 17 in 2021.
• Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return.

For tax year 2021, families claiming the CTC for tax year 2021 will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021. Under the prior law, the amount of the CTC was up to $2,000 per qualifying child under the age of 17 at the end of the year. 27 million American children will benefit directly, including more than 173,000 kids living in Rhode Island. An estimated 6,600 Rhode Island children will be lifted out of poverty.

The increased amounts are reduced (phased out), for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.

The expansion and improvement of the Child Tax Credit, will provide children and families with additional payments throughout the year that helps them with the costs of food, childcare, diapers, healthcare, clothing, and taxes. The full Child Tax Credit is now available to children in families with low or no earnings in a given year.

“Democrats and President Biden passed this tax cut to put money in the hands of parents,” said Senator Jack Reed (Democrat, Rhode Island). “That’s concrete help when it comes to a family’s taxes, and we’re going to keep pushing to make this tax credit permanent and reverse the Trump tax cut plan’s giveaways to the wealthiest. With millions of dollars available, Rhode Island families should remember to file by the May 17th tax deadline.”

“Our American Rescue Plan is the biggest piece of legislation to help working Rhode Island families in decades, and the newly expanded Child Tax Credit is a major part of it,” said Senator Sheldon Whitehouse (Democrat, Rhode Island), Chairman of Senate Subcommittee on Taxation and IRS Oversight. “The larger Child Tax Credit will help lift families into the middle class and get an entire generation of children off to a stable, strong start. I urge every family with kids to file their 2020 taxes on time so they can receive the new monthly benefit starting this summer.”

“Thanks to the American Rescue Plan Act, our nation is on the verge of slashing child poverty in half,” said United States Representative James Langevin (Democrat, Rhode Island) . “I’m deeply proud of our work to step up and deliver for Rhode Island’s working families, and I look forward to the expanded Child Tax Credit providing up to $300 per child in monthly payments to families across the state. I encourage all Rhode Islanders to file their tax returns by May 17th to take advantage of the tax relief they deserve.”

“The changes we made to the Child Tax Credit will lift millions of kids out of poverty, including 6,600 here in Rhode Island,” said United States Representative David Cicilline (Democrat, Rhode Island). “This is a historic moment. It’s critical that we make sure every eligible Rhode Islander takes advantage of it.”

“The expansion of the Child Tax Credit and the ability to receive the credit as a monthly installment will provide Rhode Island families with much needed stability and opportunity,” said Larry Warner, Chief Impact and Equity Officer, United Way of Rhode Island. “Through 211 we are proud to connect thousands of Rhode Islanders with VITA, the Volunteer Income Tax Assistance Program. If you need help with your taxes, just call 211 and we will connect you with assistance in your community.”

“The expanded, improved Child Tax Credit will improve the lives of thousands of Rhode Island families, many of whom will use the VITA program to prepare their taxes and access economic assistance,” said Allori Fernandes of Federal Hill House, which offers free tax prep services through VITA. “We’re grateful that the Congressional Delegation is continuing to fight for Rhode Island families.”