CITY OF RACINE – Eligible families are encouraged to claim the Child Tax Credit (CTC), a newly expanded federal tax credit of up to $300 per child paid monthly. The City of Racine is offering to help families navigate the required steps through its Financial Empowerment Center (FEC).
“Thanks to President Biden, Racine families have an extraordinary opportunity through the Child Tax Credit to increase their income, find more economic stability, and potentially be lifted out of poverty,” Racine Mayor Cory Mason said in a Friday news release. “My administration wants to make sure that every eligible Racine family gets the full benefit of this incredible opportunity and we want you to know the Racine FEC can help.”
Many families will automatically begin receiving the CTC money in monthly payments, with the first payments arriving this week. However, families who do not file taxes will need to take action to claim the CTC. City of Racine residents can contact the Racine FEC for free, confidential, one-on-one professional financial help to make sure they receive this tax credit and develop a plan to achieve their financial goals.
About the CTC
The expanded CTC is designed to defray the costs of child-rearing and child care, provide more child care options, and support return to work for those who have lost their jobs or income. To be eligible for the full CTC, married couples paying for tax filing or filing taxes for free must earn no more than $150,000 and heads of household (single-parent households) must earn no more than $112,500. Eligible children must also have a Social Security Number. Qualifying families will get the full CTC amount even if they owe taxes.
The full CTC provides families with: • $3,600 per child under 6 years old • $3,000 per child 6-17 years old
The CTC money does not need to be repaid.
Starting Thursday (July 15), the first half of the CTC is being automatically deposited as monthly payments of $300 or $250 into the bank accounts of most eligible families. The second half of the CTC will be made available as a tax refund next year. Families that did not file a 2019 or 2020 tax return claiming the Child Tax Credit or did not share their information with the federal Internal Revenue Service to receive stimulus payments will need to claim the CTC using the Child Tax Credit Non-filer Sign-up Tool or make appointments at the Racine FEC for free assistance claiming the CTC.
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