More money to make ends meet for Ohio families as child tax credit payments begin this week
- (geralt / Pixabay)
- The child tax credit for 2021 has increased from $ 2,000 to $ 3,000 for children aged 6 to 17.
COLUMBUS, Ohio – Many families in Ohio will soon be receiving additional cash to meet the cost of raising their children.
The 2021 Child Tax Credit expansion passed under the American Rescue Plan Act provides $ 3,600 per year for each child under age 6 and $ 3,000 for children ages 6 to 17.
David Brightbill, executive director of Washington-Morgan County Community Action, said half of the money was distributed as monthly payments starting Thursday, July 15 and would continue monthly until the end of the year.
“As unemployment benefits end, it will help families who still struggle with high rents as food costs rise,” Brightbill explained. “It will put in their pockets the money they could have gotten when they filed their income tax after the first of the year.”
Ohio is one of more than a dozen states that prematurely ended the additional $ 300 weekly unemployment benefit in the event of a pandemic. Gov. Mike DeWine said the decision was based on the need for workers, but a lawsuit challenges the decision as illegal.
Families will receive monthly payments of $ 250 per child aged 6 to 17 and $ 300 per child under 6. The rest of the money will come when taxes are filed next year. Brightbill noted that families with no income are also eligible.
“It’s fully refundable,” said Brightbill. “If you wouldn’t have paid enough income tax to get it refunded, it’s still fully refundable, so families will get the amount they’re entitled to.”
Before the COVID-19 crisis, 13% of Ohioans lived in poverty, and Brightbill argued as people were losing their jobs during the pandemic, the need for basic support was increasing.
“We’ve spent literally hundreds of thousands of dollars since the first part of November of last year on rent, mortgages and utilities,” Brightbill said. “And then for our senior nutrition program, we almost doubled the number of meals delivered to homes because people couldn’t go out.”
Ohio community action agencies educate the families they serve on credit and help those who must register to receive the benefit. About 39 million American households will benefit from the new child tax credit, which is expected to cut child poverty in half.