We’re pleased to feature this guest blog post by Ashley Burnside, Policy Analyst for the Center for Law and Social Policy (CLASP). The original version appeared on June 21, 2021.
Ashley Burnside, CLASP
Lawmakers have temporarily expanded the Child Tax Credit (CTC) available to families with children in 2021. This policy is anticipated reduce child poverty by nearly half—and to have even greater benefits for Black children, Latinx children and Indigenous children who were disproportionately likely to be denied the full value of the federal credit under prior law because they earned too little. This will make a huge difference in helping parents with the costs of caregiving and in promoting positive childhood development. Despite the wide-reaching benefits this program will have for children and families, parents are still uncertain about how the program will work.
Here are ten things you should know about the new expanded CTC program:
1. The American Rescue Plan increases the CTC available to families. The new expanded CTC will be $3,600 per year per child ages 0-5 and $3,000 per year for children ages 6-17. These funds can help parents afford necessities like diapers, school supplies, and food. But this increase in the CTC payments has only been approved for 2021.
2. Families will get the payments monthly starting in July. Parents who are eligible for the CTC will get the payments in monthly installments beginning in mid-July and continuing through December 2021. When families file their taxes in 2022, they will get their remaining CTC benefit they didn’t get through the monthly installments.
3. Families will get their CTC payments either by direct deposit or mail. The Internal Revenue Service (IRS) will use the banking information it already has on file for families to distribute the CTC payments. An estimated 80 percent of families should automatically get their CTC payment by direct deposit. The remaining families will get it by mail using the address the IRS has on file.
4. Most children will be eligible for the CTC. An estimated 90 percent of children in the United States will automatically get the CTC. Even if a parent is making little to no income, they can still be eligible for the new CTC. For married couples make $150,000 per year or less, they are eligible to receive the full CTC benefit. The benefit will phase out as their income increases above that threshold. For heads of households, the income threshold to receive the maximum CTC benefit is $112,500. Typically, children must live with the adult in the United States for more than half of the year to be eligible for the CTC.
5. Mixed-immigration-status families can be eligible for the CTC. If a child has a Social Security number and their parent(s) have an Individual Taxpayer Identification Number (ITIN), they can get the CTC if they meet the other income and eligibility requirements. (You can learn more about mixed-immigration-status CTC eligibility here.) We urge lawmakers to make kids without Social Security numbers eligible for the CTC, as they were prior to the passage of the Tax Cuts and Jobs Act of 2017.
6. About 39 million families will get the CTC automatically. If you filed a tax return in 2020 or 2019 or used the Economic Impact Payment (EIP) (commonly referred to as “stimulus payments”) non-filer portal last year, you will begin getting the CTC monthly automatically in July. Most families will not have to take any additional action to get their CTC payments. The IRS will use the information it already has on file to distribute the CTC payments to these families.
7. Other families who don’t plan to file taxes can use the IRS non-filer portal. Couples making under $24,800 annually and heads of households making under $18,650 can use the new IRS non-filer portal to claim the CTC. Families will need the full names and Social Security numbers (or ITINs for qualifying parents) for all adults and children in the household, an email address to create an account, their address, and their banking information if they want to use direct deposit to get their payment. (If they do not have banking information, the IRS will send the CTC payment as a check to the address provided.)
8. There will be a second “change of circumstances” IRS portal soon. This new portal will be a place where families can report changes to their household including significant changes in income, changes to the number of qualifying children in their household, or their marriage status. Filers can also use the portal to change their bank account information or address. Families will also be able to use this portal to opt out of the monthly payments if they prefer to get their CTC as an annual lump sum when they file their annual tax return. This change of circumstances portal should be posted to the IRS website by the end of June and will be added to over time.
9. Receiving the expanded CTC will not impact your eligibility for means-tested programs. Getting the CTC payment will not change your eligibility for programs like Medicaid, the Supplemental Nutrition Assistance Program (SNAP), or Supplemental Security Income (SSI).
10. These expansions to the CTC are only for 2021. We urge lawmakers to make these expansions to the CTC permanent, or to extend them as President Biden has proposed in the American Families Plan. We should invest in children and families beyond this year. Extending the program can also ensure that we permanently reduce poverty.
For more information, see www.childtaxcredit.gov –>
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
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Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
