Access Disconnect: Taylor – New Parent
Taylor has been a loyal client of your bank for years. A native of the local city where your bank is located, Taylor has had an account at your bank since childhood, when her parents opened her minor savings account. You have been working as her personal banker since you were assigned to her branch in 2019. Earlier this year, Taylor reveals that she is pregnant and that the baby is due before the end of 2021. During today’s visit, Taylor is interested in preparing financially for the child and wants more information on how she can open a savings account and college savings plan after the child arrives. Her overall financial priority is to make sure she is optimizing her budget ahead of the baby’s arrival. During the conversation, Taylor confirms that she is still employed as an essential worker for the municipal government, making just over $60K a year. She is single (not married) and has regularly filed taxes.
Insight
New parents and guardians are available for the full Child Tax Credit, including the advance payments, for children born or adopted any time during 2021.
Opportunity
CTC enables your bank to discuss how this benefit can bolster financial goals. In this case, bankers should make clients aware of their potential eligibility for CTC payments and how they can be integrated into spending, saving, and planning priorities.
Tactics
The IRS has developed a website to assist families with claiming the Child Tax Credit. The site has three portals: 1) Manage Payments Tool; 2) Non-Filer Enrollment Tool; and 3) Eligibility Assistant Tool
Let’s Get Set is a purpose-driven fintech that helps hardworking families become financially secure. They have specific resources dedicated to assist new parents access the Child Tax Credit.
GetYourRefund helps clients begin to file a full tax return. The tool is a non-profit service built by Code for America to help client prepare taxes
Potential Next Step
Create a Child Tax Credit landing page on your bank website that explains the benefit at a high level, and introduces clients to right-fit banking product and service solutions. Provide a link to the IRS Child Tax Credit portal for more information.