Davids Shares New Data on Child Tax Credit as Second Monthly Payment Goes Out

As the second monthly payment of the expanded Child Tax Credit starts to hit bank accounts, Representative Sharice Davids announced new data on the impact this money is having on Kansas families. Davids is the only member of the Kansas delegation who voted for this tax cut, which was expanded and improved through the American Rescue Plan to put more money back in the pockets of more families.

Davids is a member of the Joint Economic Committee, which analyzed the second round of Child Tax Credit payments and found that in Kansas in August:

• A total of $147,248,000 was put back in the pockets of Kansas families
• Eligible Kansas households received an average of $459 to help make ends meet
• The extra money in each family's budget generated a $184,060,000 impact on the local economy

Additionally, the latest Census Bureau Household Pulse Survey, released last week, found that after the first Child Tax Credit payment reached families:

• The rate of households with children who reported that they sometimes or often did not have enough to eat dropped by 24%
• The rate of households with children who report they did not have enough to eat over the last week dropped to the lowest rate since the beginning of the pandemic
• The share of adults in households with kids who reported that it was difficult to cover their expenses declined by nearly 8%

Not only will the expanded Child Tax Credit directly impact 77% of the children in the Third District, research finds that increasing family incomes has concrete positive outcomes for children, including higher test scores, higher graduation rates, improved health outcomes, lower rates of incarceration and higher future earnings. It also yields economy-wide benefit: putting money back in the pockets of local families generates additional economic activity in the community as they spend it on goods and services. The Joint Economic Committee estimates the Child Tax Credit will generate $19.3 billion in spending in local economies each month.

"We're seeing immediate positive results as the American Rescue Plan puts an average of $459 back in the pockets of eligible Kansas families with children: fewer kids are going hungry, more folks can afford necessities, and our overall economy is benefitting," said Davids. "The Child Tax Credit is a middle-class tax cut for tens of thousands of families in the Third District and across the state."

Davids also released two videos to help folks in the Third District and across the state access this new tax cut.

Watch Davids reply to a letter from a local mom, Sarah from Olathe, about the Child Tax Credit:

Click here to watch the full video.

Watch Davids share important information about the Child Tax Credit:

Click here to watch the full video.

More information on the Child Tax Credit (CTC):

The IRS launched three new online tools designed to help families manage and monitor their advance monthly payments from the Child Tax Credit:

1. The Child Tax Credit Eligibility Assistant which helps families determine whether they qualify for Child Tax Credit payments.
2. The Update Portal which helps families monitor and manage Child Tax Credit payments. The portal is a secure tool available to any eligible family, and will be where filers can let the IRS know of any changes in their income, address, or family status.
3. The Non-filer Sign-up Tool which helps families not normally required to file an income tax return to quickly register for the Child Tax Credit.

The American Rescue Plan expanded the CTC to up to $3,600 per child for children ages 0 to 5 and $3,000 per child for children ages 6 to 17. In addition, it authorized advance monthly payments for eligible families (as opposed to a lump sum payment). Beginning this week and running through December, qualifying families can get up to:

• $300 a month per child for children ages 0 to 5.
• $250 a month per child for children ages 6 to 17.

Families will qualify for a full credit if their income is below $75,000 for single filers, $112,000 for people filing as head of household, or $150,000 for people who are married and filing jointly. To be eligible, children must:

• Have a Social Security number,
• Live with the filer for at least half of the year,
• Be under age 18 as of December 31, 2021, and
• Be claimed on the filer's tax return.
  

Children are eligible if they are children, adopted children, stepchildren, half-siblings, foster children, grandchildren, nieces or nephews, or certain other relatives.

For information on how the American Rescue Plan directly helps Kansas, visit Davids' resource page. To read Davids' Child Tax Credit report on the impact on Kansas families, click here.

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