Struggling Families Want Cash Benefits, Not Child Care Subsidies
March 16, 2021
Now that President Joe Biden has signed the $1.9 trillion American Rescue Plan Act, many Americans are checking their bank accounts, eagerly awaiting their $1,400 stimulus checks.
Although it will take a little longer to arrive, an extra boost is coming for parents of young children. Thanks to temporary changes to the Child Tax Credit (CTC), eligible families will begin receiving a de facto child allowance in August, and when it's time to file taxes next year, they'll be able to claim the rest of the expanded CTC. The stimulus bill also increased the Child and Dependent Care Tax Credit, which means working parents will be able to deduct a larger proportion of their child care costs.
