THOUSANDS of Americans are set to receive direct payments of up to $750 in just weeks.
Families will get $250 per child and a maximum of $750 total for up to three children.
To be eligible for the payments, residents must have filed their 2021 Rhode Island personal income tax return.
For those who filed an original or amended return by August 31, their rebate will be issued starting in October 2022.
Those who are filing an extension by the October 17 extended filing deadline will get the rebate starting December 2022.
Around 115,000 families across the state are expected to benefit.
Read our child tax credit live blog for the latest news and updates…
Your child must also have SSN for CTC payment
In order for your child to make you eligible for the Child Tax Credit, they must have a valid Social Security number (SSN).
As a result, if your child doesn’t have a valid Social Security number, you were not able to get advance Child Tax Credit payments for that child.
You must have an SSN for CTC payment
To be eligible for the Child Tax Credit, you — and your spouse if you’re married and filing jointly — must have a Social Security number (SSN) or an IRS Individual Taxpayer Identification Number (ITIN).
Only if you utilized your accurate SSN or ITIN while filing a 2020 or 2019 tax return were you eligible for advance Child Tax Credit payments.
Payments of the Advance Child Tax Credit were provided to qualified children who possessed a valid SSN for work in the United States.
Child care desert, explained
A child care desert is where the need for child care exceeds the supply.
A child care desert is any census tract with over 50 children under age 5 that has either no child care providers or so few options that there are more than three times as many children as licensed child care slots.
In the US, 51 percent of people live in a child care desert, according to the Center for American Progress.
Santa Monica considers child care in budget
The Santa Monica City Council will consider allocating $8million from the budget to “human services.”
This will include homeless and senior services, food assistance, job training, childcare subsidies, and more, according to the Santa Monica Daily Press.
The funds will be provided by the Human Services Grants Program.
The decision should be made by spring 2023.
How to compute adjusted gross income
The first step in computing your AGI is to determine your total gross income for the year.
Your gross income includes your salary and any earnings from self-employment ventures, investment dividends, retirement income, and things of similar nature.
To arrive at your final AGI, you will subtract certain amounts from your total income.
For example, teachers can deduct classroom expenses that have not been reimbursed, self-employed people can deduct insurance premiums, and everyone can deduct charitable donations.
Adjusted gross income explained
When filing, your eligibility for certain tax credits and rebates might be based on income requirements, which are based on adjusted gross income.
AGI is simply your total gross income (earnings before tax or other deductions) minus specific deductions.
Generally, the more deductions and credits you take, the lower your taxable income.
Applying for Head Start
To apply for Head Start you must contact the program in your community using the Head Start Locator tool.
Your local program will then provide you with all of the required forms and answer any questions you may have.
They will also tell you what documents you should bring with you to apply as they may vary by location.
Eligibility for Head Start
Many Head Start programs provide Early Head Start, serving infants, toddlers, and pregnant women and their families with incomes below the federal poverty level.
To find out if you’re eligible, visit the Head Start program page on Benefits.gov.
What is Head Start?
Head Start is a federal program encouraging school readiness of children from birth to five.
These children are from low-income families and are being helped to improve intellectual, social, and emotional development.
The learning environment supports children’s growth in areas like language, literacy, and social and emotional development.
The program also helps build relationships with families that support family well-being.
Counties with the lowest child poverty rates
The five counties that have the lowest rates of child poverty are:
- Stanley County, South Dakota – Child poverty rate: 0.0 percent
- Douglas County, Colorado – Child poverty rate: 2.4 percent
- Goochland County, Virginia – Child poverty rate: 2.4 percent
- Carver County, Minnesota – Child poverty rate: 2.5 percent
- Rooks County, Kansas – Child poverty rate: 2.8 percent
Cities with the highest child poverty rates
As poverty rises, children continue to be disproportionately affected.
Over 40 million Americans live below the poverty line with the US being one of the worst child poverty rates among wealthy, developed countries.
The top five cities with the highest rates are:
- McAllen-Edinburg-Mission, TX – Child poverty rate: 39.6 percent
- Brownsville-Harlingen, TX – Child poverty rate: 38.3 percent
- Monroe, LA – Child poverty rate: 35.4 percent
- Las Cruces, NM – Child poverty rate: 34.7 percent
- Albany, GA – Child poverty rate: 34.2 percent
Scope of the proposed Family Security Act 2.0
The act includes cuts to the earned income tax credit and eliminated the ability to file as a head of household, CNBC reports.
According to the Center on Budget and Policy Priorities, about 7 million families earning less than $50,000 would lose money under the new plan.
The act will also phase in more quickly and eliminates the current $1,500 refund cap.
Republican Senators propose Family Security Act 2.0, part two
Americans making over $10,000 are eligible for the child tax credit under the new Republican plan.
Checks per child are limited to under six children.
Those making over $200,000 per year and couples making over $400,000 would receive lower checks due to their income.
For every $1,000 earned above the previously stated incomes, the credit would decrease by $50, as the tax break is intended for Americans with low-moderate incomes, CNBC reports.
Republican Senators propose Family Security Act 2.0
The Republican Senate proposal has plans to take another look at child tax credit checks that expired last December.
The proposal details that families would receive $350 a month per child under the age of five and $250 a month for children ages six through 17.
Rhode Island requirements
To receive a rebate, an eligible Rhode Island taxpayer must meet certain criteria.
Taxpayers must file their Rhode Island 2021 personal income tax return as one of the following:
- Married filing separately
- Head of household
- Qualifying widow or widower, with a federal adjusted gross income of $100,000 or less
- Married filing jointly, with a federal adjusted gross income of $200,000 or less
Taxpayers must also have a qualifying child dependent (18 years of age or under as of December 31, 2021).
For those filing an original or amended filing by August 31, your rebate will be issued starting in October 2022.
For those filing by the October 17 extended filing deadline, your rebate will be issued starting in December 2022.
New Rhode Island payment
In an attempt to extend the child tax credit benefits needed by so many families amid soaring inflation, several states, including Rhode Island, are already offering their own child tax credit programs.
While the expanded tax credit has expired, families can still claim the remaining six months of payments if they haven’t yet filed their 2021 taxes, with the deadline for extensions set on October 17.
The payment will be $250 for each qualifying child.
There is a maximum of three children, so the most a family could receive is $750.
Iowa offers tax credit on school expenses
The state of Iowa has a tax credit that gives families back 25 percent of their spending on tuition and textbooks, with a maximum $500 credit.
Any household with a student enrolled in a non-profit public school or private school can claim the cash.
Tax credit in Colorado
Colorado is rolling out a new child tax credit in 2022 that is similar to the federal support.
The amount you will receive depends on your income and filing status, but the credits are fully refundable.
It will be available for Colorado residents to claim on their 2022 Colorado income tax return when they file beginning in January 2023.
This will be available to individuals with incomes of $75,000 or less ($85,000 for married taxpayers filing jointly) who have children below six as of December 31, 2022, according to the Department of Revenue.
You can get between five percent and 30 percent of the federal CTC for each child.
California’s child tax credit
Those with children under six could also be eligible for the young child tax credit.
Families with earnings under $25,000 may receive up to $1,000 each, while those with income of up to $30,000 get a reduced credit.
The CTC helped mom with sick children
“My sons have a rare genetic disease. I had to quit my job & move to another city; close to hospital.”
“These last few months #ChildTaxCredit has been relieving some of my stress. If Congress adds a work requirement, my family wouldn’t qualify,” Anna shared with Family and Home Network last year.
Increasing CTC coverage could reduce hardship
Finally, the NBER found in their previous report from before the payments concluded, “increasing the CTC coverage rate would be required in order for material hardship to be reduced further.”
“Self-reports suggest the lowest-income households were less likely than higher-income families to receive the first CTC payments,” the paper added.
“As more children receive the benefit in future months, material hardship may decline further.”
“Even with imperfect coverage, however, our findings suggest that the first CTC payments were largely effective at reducing food insufficiency among low-income families with children.”
Payments reduced food insufficiency in marginalized groups
The Bureau also found that child tax credit payments helped certain specific groups more strongly.
“The effects on food insufficiency are concentrated among families with 2019 pre-tax incomes below $35,000, and the CTC strongly reduces food insufficiency among low-income Black, Latino, and White families alike,” the study found.
CTC payments ‘strongly reduced food insufficiency’
The National Bureau of Economic Research released a paper on the impacts of the child tax credit payments and revealed startling findings.
First, the child tax credit payments “strongly reduced food insufficiency: the initial payments led to a 7.5 percentage point (25 percent) decline in food insufficiency among low-income households with children,” according to the study.
Indiana man stole CTC money
A local news outlet reported that a man from Mitchell, Indiana, allegedly stole more than $600 of a woman’s child tax credit money in November 2021.
The incident was captured on video surveillance, and the man, identified as 33-year-old Michael Jarvis, was arrested on theft charges.