Our Children This Month, November 2021
Our Children This Week (OCTW) Has Evolved
TCM’s Mission Has Expanded to Include Grass Roots Leaders In Policy Development
For the past four years, TCM has published Our Children This Week (OCTW) a policy E-Digest that provided access to current news and policy information relevant to issues of concern to our community. OCTW has now evolved into a new format that will be published monthly called Our Children This Month (OCTM). Our new publication will draw on a variety of reliable resources to provide information in support of the expanded mission of TCM which now includes the 104 member Fresno Residents Council. The power of any policy decision-making is significantly strengthened by direct input from the community. Working collaboratively with the C2C Partnership, this new group of grass roots leaders will provide lived experience and ideas to develop and implement a policy agenda. Importantly, OCTM will strive to promote racial equity, a core TCM value, and support community engagement that gives authentic co-empowerment to community members to shape and drive the decision-making process.
The Response to the Pandemic Has Altered U.S. Anti-Poverty Policies
A significant influx of new money to support families and how some of those resources are being distributed has been a silver lining of the pandemic. Prior to now, anti-poverty policies in the United States have been driven by a fundamental principle that we don’t give cash to low income people. This in turn has given rise over time to a staggering array of programs each with their own rules and regulations from multiple agencies that must be separately applied for creating a tremendous burden to the recipients—food stamps, housing, childcare, mental health, medical, transportation to name but a few. The recently enacted American Rescue Plan has temporarily turned this anti-poverty “no cash” frame upside down and created a different approach to an expansion of the social safety net. It gives money to people directly and lets them decide for themselves how best to use it.
"The recently enacted American Rescue Plan has temporarily turned the entrenched anti-poverty policy of not giving cash to low income people upside down. It gives money to people directly and lets them decide for themselves how best to use it."
The Child Tax Credit Lets Families Decide How To Spend Their Benefit
A good example of this is an overhaul of a Child Tax Credit (CTC), an annual payment that previously maxed out at $2,000 per child for middle-income parents with low-income families receiving nothing.
Under the current plan all families qualify who meet the following income criteria:
- $75,000 or less for single taxpayers,
- $112,500 or less for head of household,
- $150,000 or less for married couples filing a joint return and qualifying widow(er)s
Credit Payments are paid in advance:
- $3,000/year (or $250 per month) for each child age 6-17
- $3,600 (or $300 per month) for each child age 0-5
Starting in July this year, payments are being distributed monthly by direct deposit into bank accounts on file with the IRS or by check. A key feature of the reconfigured Child Tax Credit is that a family will receive the full amount over the year so long as they have a Social Security number or Individual Tax Identification Number and have filed a 2020 income tax return. The money received can be used at a family’s sole discretion for their self-determined needs and priorities.
Too Many Qualifying Fresno Families Are Failing To Receive Their CTC Benefits
Although the revised Child Tax Credit is an important step forward in expanding the safety net for American families, there are some important issues at play going forward if all eligible families are to benefit. The payments to families began in July but, unfortunately, many qualifying Fresno County families have not received the benefits. One big catch is that many of the children who most need the help live in families that didn’t file 2020 tax returns. Analysis by the California Policy Lab reports that 23% of Fresno County children are likely falling through the cracks, including families with zero earnings who became eligible for the first time. More than half of these children are identified as Hispanic and one-third live in households where English is not the primary language. Children identified as American Indian or Alaskan Native are among the highest risk of not receiving this benefit. About 84% of at-risk households are headed by single adults and over two-thirds have no observed wage earnings. An additional issue is that if a 2020 tax return is filed with no bank account information for a direct deposit, the monthly payment is disbursed by check. This requires a current address on file with the IRS in order for the payment to be received. This can cause significant difficulties for families who have moved since they filed for 2020, a factor that is especially troublesome with the current housing crisis. The best way to resolve this problem is for a qualified family to create a bank account if they don’t have one or to link an existing bank account with their IRS filing so that receipt of the payment isn’t dependent on a correct physical address. Another huge challenge is reaching undocumented residents who can access the CTC if they have an Individual Tax Identification Number but may be reluctant to apply.
It's Not Too Late To Sign Up For CTC Benefits
The good news is that it isn’t too late to sign up for the Child Tax Credit. To qualify, a family must file a 2020 tax return—ideally with bank account information included. If they are eligible and fall below the non-filer threshold or have difficulties with the paperwork, there are several resources that can be used to get help in preparing and filing the necessary forms.
Non-filer portal
Local Tax Preparation Services
Advanced Child Tax Credit Guide
Multilingual Services
The California Department of Social Services (DSS) has started reaching out to at-risk families and is using multilingual resources such as GetCTC.org, plus live assistance and mobile-friendly tax-filing solutions to help families file a tax return.
THIS JUST IN! Support Current & Former Fresno Foster Youth
Become a VITA Volunteer!
If your or someone you know is interested in helping current and former foster youth and transition age youth in Fresno County prepare for and file their taxes to help them get unclaimed tax refunds or credits, Fresno Barrios Unidos, Focus Forward, and Advocates for Youth is looking for volunteers to work online or in-person.
No experience necessary! All training will be provided.
There is very good news just in! After months of debate, the Infrastructure Act just signed by President Biden yesterday has extended the $130 billion expanded Child Tax Credit that was in the Rescue Act passed earlier this year. The new act has the same eligibility levels and there are no work requirements. In addition, benefits will be made permanently refundable, which means the poorest Americans won’t have to meet an income threshold to get the full tax credit.
In Community,