The tax credit phase out begins at $200,000 for the expanded child tax credit and $400,000 for the standard tax credit.
Using the Kiplinger calculator a couple with two children over age 6 and an income of up to $477,000 will receive a portion of the credit, albeit tiny.
And yet all we hear about is raising children out of poverty. Exactly how does that work? Especially given the enhanced credits are temporary, and considering there are no restrictions on how families use the money. In other words, for millions of recipients there is no connection between children, poverty and the cash.
According to HUD, the national median family income is $79,900. Americans with income below that can use a tax credit, taxpayers earning several times that income do not need a tax credit for each child. None of those individuals are living at or near poverty.
Federal poverty guidelines in 2021, are $26,500 for a family of four. A tax credit can mean a lot to these folks.