SHOULD BE SEEING SOME EXTRA
MONEY RIGHT ABOUT NOW.
AS PART OF THE AMERICAN RESCUE
PLAN, PAYMENTS FROM THE EXPANDED
CHILD TAX CREDIT STARTED LANDING
IN BANK ACCOUNTS LATE THIS WEEK.
THE CREDIT IS $3600 A YEAR FOR
CHILDRENNDER SIX YEARS OLD AND
$3,000 FOR SIX THROUGH
17-YEAR-OLDS.
HALF OF THE CREDIT CAN BE
CLAIMED WHEN FILING INCOME TAXES
IN APRIL.
THE OTHER HALF GOES INTO MONTHLY
INSTALLMENTS THROUGH DECEMBER OF
THIS YEAR.
SO THAT'S $300 A MONTH FOR EACH
CHILD UNDER SIX AND $250 FOR
OLDER CHILDREN.
THE PAYMENTS START TO PHASE OUT
AT INCOMES OF $75,000 FOR
INDIVIDUALS AND $150,000 FOR
MARRIED COUPLES.
THE MONEY IS A GAME-CHANGER
ACCORDING TO TAMARINE CORNELIUS,
RESEARCH ANALYST FOR KIDS
FORWARD.
THANKS A LOT FOR BEING HERE.
>> THANKS FOR HAVING ME.
>> SO HOW IS THIS EXPANDED TAX
CREDIT A GAME-CHANGER IN TERMS
OF HELPING FAMILIESF LOWER
INCOMES?
>> THESE PAYMENTS REPRESENT AN
IMPORTANT INVESTMENT IN
WISCONSIN'S FAMILIES AND
WISCONSIN'S KIDS AND THEREFORE
IN WISCONSI WISCONSIN'S FUTURE.
RAISING KIDS IS HARD, RIGHT?
AND IT'S IMPORTANT.
AND IT'S EVEN HARDER WHEN
FAMILIES HAVE TO STRUGGLE TO
MAKE ENDS MEET.
SO THESE PAYMENTS CAN HELP
FAMILIES BY HELPING THEM PAY FOR
RENT OR, YOU KNOW, CATCH UP ON
BILLS OR BUYING SCHOOL SUPPLIES,
WHATEVER FAMILIES NEED TO
THRIVE.
THIS PAYMENT CAN CONTRIBUTE TO
THAT.
>> IN ALL, HOW MANY HOUSEHOLDS
WILL BE GETTING THIS MONEY FROM
THE EXPANDED CREDIT, INCLUDING
THOSE WHO WERE NOT ELIGIBLE
BEFORE?
>> SO 1.2 MILLION KIDS ACROSS
WISCONSIN ARE GOING TO GET THIS
CREDIT.
SO THAT'S MOST KIDS, ARE GOING
TO GET THIS CREDIT.
>> AND --
>> AND THE ADVANCE PAYMENTS.
>> AND I UNDERSTAND THERE WERE
OVER 350,000 WHO WOULD NOT HAVE
BEEN PREVIOUSLY ELIGIBLE WHO ARE
ELIGIBLE FOR THIS.
>> RIGHT.
SO THERE'S THREE MAJOR AND
TEMPORARY CHANGES TO THE CHILD
TAX CREDIT THAT WE'RE SEEING.
ONE IS THAT HALF THE CREDIT IS
PAID OUT IN ADVANCE PAYMENTS,
NOT THROUGH THE END OF THE YEAR.
AND THAT'S WHAT YOU ALLUDED TO.
THAT'S ONE CHANGE.
THAT'S WHAT HIT PEOPLE'S BANK
ACCOUNTS THIS WEEK.
THE SECOND CHANGE IS THAT THE
AMOUNT OF THE CREDIT IS
INCREASED.
SO IT USED TO BE $2,000 AND NOW
FOR 2021 IT'S EITHER $3,000 OR
$3600, DEPENDING ON THE AGE OF
YOUR KID AND THE NUMBER OF YOUR
CHILDREN.
AND THEN THE THIRD CHANGE IS
THAT IT USED TO BE, BUT
TEMPORARILY CHANGED, THAT
FAMILIES WITH LOW INCOMES COULD
NOT GET THE FULL AMOUNT OF THE
CREDIT AND FAMILIES WITH THE
VERY LOWEST INCOMES COULDN'T GET
THE CREDIT AT ALL.
SO FAMILIES WHO COULD MAKE THE
MOST USE OF IT HELPING TO MAKE
ENDS MEET OR GETTING DIAPERS FOR
THEIR KIDS, THEY WERE SHUT OUT
OF THE CREDIT.
AND THAT CREDIT -- THAT SORT OF
DELIBERATE LOCKING PEOPLE OUT OF
CREDIT HAD SOME VERY STARK
RACIAL IMPLICATIONS AS WELL.
SO ABOUT HALF OF BLACK AND
HISPANIC KIDS WHO ARE FAMILIES
THAT HAVE TRADITIONALLY FACED
BARRIERS TO HIGHER-PAYING JOBS
AND TO EMPLOYMENT, ABOUT HALF OF
THEM COULDN'T GET THE FULL
AMOUNT OF CREDIT, COMPARED TO
ONLY ABOUT A QUARTER OF WHITE
KIDS.
SO THIS LAST CHANGE, WHERE THE
LOW INCOME OR THE LOWEST-INCOME
FAMILIES CAN GET THE FULL
CREDIT, THAT IS GOING TO AFFECT
ABOUT 350,000 WISCONSIN KIDS WHO
BEFORE COULDN'T GET THE FULL
AMOUNT OF THE CREDIT.
>> DO FAMILIES HAVE TO DO
ANYTHING TO SEE THIS CREDIT, SEE
THIS MONEY?
>> THERE IS TWO ANSWERS TO THAT.
MANY FAMILIES DO NOT, THAT IT
JUST COMES AUTOMATICALLY.
SO IF YOU FILED TAXES FOR 2019
OR FOR 2020 OR YOU FILED TO GET
STIMULUS PAYMENT, THEN THE MONEY
SHOULD COME AUTOMATICALLY TO
YOUR BANK ACCOUNT.
BUT THAT'S NOT EVERY FAMILY.
AND IN MANY CASES THAT'S NOT THE
FAMILIES WHO MIGHT NEED IT THE
MOST.
SO OTHER FAMILIES WHO ARE NOT
DESCRIBED BY THOSE CRITERIA,
THEY ARE GOING TO NEED TO TAKE
ACTION TO GET IT.
AND THEY -- AND THEY SHOULD GO
TO CHILDTAXCREDIT.GOV FOR OTHER
INFORMATION ABOUT THE CREDIT.
THAT'S KIND OF THE HUB FOR WHERE
YOU CAN FIND OUT AND GET
CONNECTED.
>> THANK YOU FOR THAT
INFORMATION.
WHAT ABOUT THE ARGUMENT THAT
THESE CREDITS WERE EXPANDED TO
INCLUDE NONWORKING HOUSEHOLDS,
WHICH COULD INCENTIVIZE NOT
WORKING?
>> YOU KNOW WHAT THIS IS REALLY
ABOUT IS INVESTING IN
WISCONSIN'S FUTURE, RIGHT?
AND THAT'S IMPORTANT FOR KIDS IN
ALL FAMILIES AND SHOULDN'T BE
TIED TO WHETHER THEIR PARENTS
ARE WORKING OR NOT.
WHEN KIDS ARE LIFTED UP OUT OF
POVERTY, THAT BRINGS A WHOLE
SLEW OF ASSOCIATED POSITIVE
BENEFITS THAT IMPROVE LIVES FOR
EVERYONE.
IT REDUCES LOW BIRTH WEIGHT
BIRTHS.
IT LOWERS MATERNAL STRESS.
IT HELPS KIDS ATTEND SCHOOL.
IT MEANS LOWER USE OF DRUGS AND
ALCOHOL DOWN THE ROAD.
IT MAKES KIDS MORE LIKELY TO GO
TO COLLEGE.
ALL OF THESE THINGS ARE LINKED
TO IMPROVING ASSISTANCE TO
FAMILIES AND TO SAY THAT BECAUSE
FAMILIES ARE HAVING A TOUGH TIME
GETTING A JOB WE SHOULDN'T MAKE
THOSE INVESTMENTS AND WE
SHOULDN'T IMPROVE THE LIVES OF
THOSE KIDS IN THIS WAY THAT
GIVES A FANTASTIC RETURN ON
INVESTMENT IS REALLY
SHORT-SIGHTED.
<!32768>WE NEED TO LEAVE IT THE.
TAMARINE CORNELIUS, THANKS VERY
MUCH.
>> THANKS.