Governor Ned Lamont, Speaker of the House Nancy Pelosi and Congressman John B. Larson highlighted the Biden Child Tax Credit on Wednesday afternoon.
The Biden Child Tax Credit was approved earlier this year as part of the American Rescue Plan Act.
"The American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six, and raised the age limit from 16 to 17," officials said.
Working families who make up to $150,000 per couple or $112,500 for families with a single parent qualify.
The child tax credit is money in the pockets for families to meet their needs whatever they are for their children.”
Pelosi said in the reconciliation bill they have hundreds of billions of dollars for child care tax credits. This year the government did something different and decided to start making payments in advance of tax season.
"The child tax credits being received by families are not taxable at all which is fantastic. These are pure tax credits," explained Jay Sattler, regional tax managing principal at CLA (CliftonLarsonAllen).
The tax relief will be given automatically for qualified people who have filed tax returns for 2019 and 2020 or qualified people who signed up to get a stimulus check from the IRS.
The tax credit is given in monthly payments from July through the end of 2021. For every child ages 6-17, families will get $250 each month. For every child under 6, $300 will be given monthly. Payments will continue until the end of the year, unless parents decide to opt out and instead claim the money as part of their 2021 tax return.
"In many cases the credit is an additional $1,000 per child, or an additional $1,600 per child above and beyond the child tax credits that we’re all used to," Sattler explained.
Democrats in Congress believe more needs to be done. They've introduced a $450 billion child care proposal that will get its first hearing Thursday.
"I don’t want it to be viewed as something for those who aspire to the middle class because that would be reason enough to do it, but because we have middle-class families who cannot afford child care," Pelosi said.
The bill includes free pre-K.
"The women of America took the biggest bite of the wormy apple called COVID in terms of losing their jobs. In terms of losing their jobs. Over 4 million women lost their jobs," Pelosi said.
The speaker said women had to stay home and many lost their child care.
"We have to have a system and a society that values our children, respects our childcare workers as well," Pelosi said.