Child tax credits could lift thousands in Detroit out of poverty, mayor says

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Detroit – Detroit Mayor Mike Duggan told eligible families on Monday that federal child tax credit funds could “lift many city dwellers out of poverty.”

Duggan said he estimated 90% of Detroit families with children would be eligible for the funds, “without conditions.”

As of Thursday, $ 3,000 to $ 3,600 per child is available to eligible families this year as part of the US bailout that President Biden signed in March, Duggan said in a speech to explain the credit. The credit will provide eligible residents with monthly checks. The plan was designed to ease the financial pressure on families made worse by the pandemic.

A family with three children under the age of 17 can claim more than $ 10,000, Duggan said. Those with an income of $ 75,000 or less, or a married couple with a combined income of $ 150,000, are also entitled to the money.

The plan is expected to reduce child poverty by more than 40%, according to the Brookings Institution.

Residents must file federal income tax returns for 2019 or 2020 or be registered to receive a stimulus check from the Internal Revenue Service, Duggan said, before receiving monthly checks for half of the 2021 child tax credit. this year in their banks on July 15. The remaining credit comes when taxes are filed next year, according to whitehosue.gov/child-tax-credit/.

Those who do not have a bank account will receive checks at the same address they received their stimulus checks or at the address registered with the IRS. Children must have a social security number.

“With this one-time tax credit, President Biden and our delegation to Congress have given families in Detroit an extraordinary opportunity to dramatically increase their income this year and, in many cases, lift themselves out of poverty,” said Duggan, noting that it is estimated that at least 20,000 Detroit children and their families will be affected by the program.

“We will do everything we can as administrators to ensure that every eligible family in our city can take advantage of this incredible opportunity. Some people can’t believe it’s true because we’ve never seen anything like it. And we may never be able to again. But tell your friends and family that they may have some money coming up.

“We have to reach out to people. It is estimated that 90% of Detroit families with children will be eligible for these cash payments, and there are no strings attached.”

Children born or adopted before December 31 are eligible for tax credits, provided they reside with beneficiaries for at least six months of the year. While only one person can claim a child tax credit as a dependent on tax returns for one year, parents who care for children or who have claimed them as tax deductions for part of the year are also eligible for this period.

Tax credit checks do not affect other forms of public service, Duggan said, and are not considered income or a tax refund.

Duggan’s address was broadcast live on the town’s website and Facebook, and can be viewed on the town’s website, detroit.mi.gov. If you have any questions, call 2-1-1 or visit websites where experts are available to provide answers, including www.irs.gov/ChildTaxCredit, UnitedWaySem.org/taxes, or GetTheTaxFacts.org.

Duggan said two qualified IRS tax preparation agencies, the Accounting Aid Society and the Wayne Metro Community Action Agency, will provide free tax filing services to people with incomes below $ 57,000.

People who want to file their own tax returns can take advantage of online software and free phone support at (866) 698-9435 between 10 a.m. and 10 p.m., he said.

“Let’s make sure we get every dollar in the city that we can,” Duggan said. “For some children and families, it can be life changing. For a few months at least.

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