Allred: Improved Child Tax Credit Benefit will Help North Texas Families

May 11, 2021
Press Release
Encourages North Texans to file 2020 taxes soon to get accurate advanced monthly benefit

Washington, D.C. — Congressman Colin Allred (TX-32), today highlighted a key provision of the American Rescue Plan which will dramatically increase the benefits of the Child Tax Credit to many families across North Texas. The American Rescue Plan also reworked the credit so that it is partially issued in monthly payments averaging $250 per month per child, and $300 per month for a child under six. The average total benefit will be $3,000 per family. Those advanced payments are scheduled to start going out in July. 

“I was raised by a single mom who was a public school teacher, and I know how hard it can be for families across North Texas. It’s why I was so proud to vote to expand and improve the Child Tax Credit in the American Rescue Plan,” said Allred. “The average benefit will be about $3,000 per family and I encourage North Texans to file their 2020 taxes soon to ensure they get an accurate advanced Child Tax Credit. I will keep working to help our children succeed and get middle-class North Texas families the help they need.”

The tax credit was expanded from $2,000 to $3,600 for children under age 6 and to $3,000 for children ages 6 to 17. Due to the severe winter storm earlier this year, the IRS granted Texans an extension until June 15 to file their federal taxes. The child benefit will be based on their 2019 tax return until they file their 2020 return. 

The House Appropriations Committee highlighted the impact of the expanded tax credit in Congressional districts across America here

Key Benefits of the improved and expanded Child Tax Credit: 

  • An estimated 84.9% of children in the 32nd district will gain from expanded and improved Child Tax Credit — an estimated 162,300 children.

  • The average benefit for 48,100 households is $3,000.

  • The expanded and improved Child Tax Credit lifts 13,400 children in the 32nd district out of poverty.

  • Because of the larger benefit for the youngest, 4,700 kids under the age of six are raised out of poverty.

  • Families with children in poverty will receive $4,500 on average. 

  • The expanded tax credit will get 1,800 children in the 32nd district out of deep poverty.

  • Columbia University estimates that if extended for the long term the expanded credit will cut the child poverty rate nearly in half in the state of Texas, from 15.7% to 8.7%.