The American Rescue Plan Act of 2021 made big changes to the Child Tax Credit, expanding eligibility to cover an estimated 93% of Kentucky kids and splitting the credit into two halves. Eligible Kentucky families received the first half of the expanded credit through monthly Child Tax Credit payments that ran from July to December.
All eligible families can claim the second half of the Child Tax Credit by filing taxes this year, including families with little to no income who are not required to file taxes.
The first half of the expanded Child Tax Credit had a tremendous impact on Kentucky families, lifting them out of poverty and helping them fulfill their basic needs. The expanded credit is estimated to have reduced childhood poverty by 49%. In a survey examining how Kentucky families spent the advanced credit, families reported spending it to purchase food for their family (56%), manage bills (38%), and buy clothing (28%).
The expanded Child Tax Credit has been a powerful anti-poverty tool for Kentucky families, and families can continue to benefit from the credit by claiming the second half this tax season. Organizations that work with families, providers, and community groups will play a crucial role in ensuring families – especially Black and Latinx families who have disproportionately missed out on the Child Tax Credit in previous years – receive the full credit.
You don’t have to be a tax expert to help families claim the 2021 Child Tax Credit!
There are resources available that communities and organizations can use to promote the tax credit, connect families to tax assistance, and promote February 8th as Child Tax Credit & Earned Income Tax Credit Awareness Day.
- Our partners at the Partnership for America’s Children have released an outreach toolkit. This toolkit includes flyers, FAQ’s, social media graphics, and other outreach materials in both English and Spanish.
- GetYourRefund.org can help families find free in-person and virtual tax filing assistance. This resource is available in both English and Spanish.
- The Center for Budget and Policy Priorities has compiled a list of documents needed to file taxes accurately. This list can be found in English and Spanish.
- The IRS has created an FAQ that families can consult with for questions about the Child Tax Credit.