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Why 2.3 million US children could miss out on expanded tax credit

Why 2.3 million US children could miss out on expanded tax credit
Business
When Joe Biden expanded the US Child Tax Credit (CTC) this summer, it immediately slashed America s high child poverty rate by a third. Yet while about 67 million children are eligible for the benefit, many of the most vulnerable families are still missing out.

The amount parents could claim jumped from $2,000 (£1,464) per child annually, to up to $3,600.

The benefits are also paid out monthly, rather than just when families file their annual taxes, meaning the poorest get help sooner.

However, you have to be registered with the Internal Revenue Service, the US tax agency, to claim the help. And up to 2.3 million families are not, according to the government.

What s more, experts say these families are likely to be the ones most in need of help.

Kimberly (not her real name) from Oxon Hill, Maryland is eligible to claim the tax credit for her one-year-old daughter, but hasn t received a single payment since July.

The former waitress, 22, hasn t worked since the start of the pandemic and relies on her husband, a painter, for support. They are struggling to pay their rent and healthcare bills.

"It s really unfair," she says, pointing out she wants to use the money to buy things like nappies and baby milk.
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