2021 Child Tax Credit – Bank and Community Toolkit
Approximately 4 million or more children are eligible, but are not yet receiving the advance child tax credit.
GetCTC Filing Deadline: Nov. 15, 2021. File >>
The American Rescue Plan Act’s (ARPA) expansion of the Child Tax Credit (CTC) substantially supplements the earnings of recipient families.
- GetCTC Filing Deadline: November 15, 2021. File >>
Key Changes to the Program:
- Children 17 years old and younger will now be covered by the Child Tax Credit (previously: 16 years old and younger)
- Fully refundable and uncapped tax credit
- Low-income parents will qualify for the full benefit
Overview of the Child Tax Credit Expansion
Banks are uniquely positioned as a connection point to both financial services and to “front-line” community-based organizations that complement and accelerate the delivery of the financial benefits associated with the Child Tax Credit (CTC). Banks function as a CTC access provider (bank accounts) and – in conjunction with community-based partners – a CTC awareness generator. This toolkit is a resource that has a three-fold purpose: to define the problem; recommend an approach; and provide additional resources.
Learn more about the Child Tax Credit expansion and how you can help to facilitate enrollment by intended recipients by clicking on the download link below.
Download the Child Tax Credit Toolkit
Did you know 4+ million
children are eligible, but not yet receiving the advance child tax credit, according to research. Roughly 2.3 million children have documented health insurance but do not appear on an existing tax return and 1.6 million children are expected to be born in 2021 with Medicaid coverage.
children did not receive the standard child tax credit because their parents did not earn enough income under the previous law to qualify for the benefit ($2,500 annual income)
of American children live in poverty.
The Child Tax Credit is not reaching certain eligible recipients.
Who are these recipients and what are the disconnects?
- Very low incomes; Including those who are self-employed
- Lower education levels
- Persons with disabilities
- Limited or smartphone-only internet access
- Housing insecure
- Demographic: Underrepresented people of color
- Lack SSNs but whose children have SSNs (Immigrant families)
- English as a Second Language families
El Círculo HispanoEl Círculo Hispano (CH) – a local organization that advocates and provides services for the growing Hispanic-Latino population – is a non-profit that your bank’s Foundation funds and where you (the branch manager) and your branch teammates regularly serve. Esperanza, CH’s Executive Director, calls you with a unique request. Continue Reading >>
Steps Banks Can Take to Support Enrollment by Intended Recipients:
- Social Media Campaign Toolkit
- Direct Client Outreach (SMS, Call Script, Email/Direct Mail) to Potential Beneficiaries
- Website Messaging
- Facts and One-pagers
Access More Resources and Case Studies
Additional Efforts Underway to Improve Financial Access
“Bank On” is a national program, being implemented through many local Bank On coalitions in collaboration with the Cities for Financial Empowerment (CFE) Fund, whose goal is to advance financial inclusion through expanded access to low-cost bank transaction accounts. Some of the core features of the program include offering simple checking accounts with low minimum balances and no overdraft fees. Currently, more than 100 banks, comprising 52 percent of national deposits, offer Bank On certified accounts.
- 144 Bank On certified accounts are currently publicly available, available at 37,050+ branches across the country.
- 5.8M customers have opened Bank On certified accounts at the 10 financial institutions that reported data to CFE Fund’s BOND Hub, per the most recent data from the St. Louis Fed.
- 40% of all US bank branches offer a Bank On certified account