Thousands of families here in Mississippi work hard to get by. Parents hold down multiple jobs, watch every dime and fight to tighten their belts, yet it’s still hard to make ends meet. At a 19.4% poverty rate, Mississippi is one of the top 10 poorest states in the country. However, there is some hope of relief with the Child Tax Credit.
The Child Tax Credit, or CTC, is a tax refund designed to help with the expense of raising a child. It’s been around for decades, but it usually only reaches a limited group of parents—those who make enough money to owe enough taxes to receive a refund. And that means that, in past years, it left out families with the most need, those who make little or no income.
That changed in 2021 when the American Rescue Plan Act temporarily “enhanced” the CTC to provide increased financial relief to parents. All families, including those with meager incomes, could receive the full benefit for the first time.
And it worked nationally. Almost overnight, the national child poverty rate fell by nearly one-third. Child hunger plummeted. Families reported using the benefit on basic necessities, like clothing, rent, utilities and groceries. Others used it for emergency savings, child care, or starting a college fund, which could have a meaningful impact on building a path out of future poverty. For families living with health disparities, this influx of cash could mean the difference in some severe health complications.
Hurry to Apply For the CTC
On Dec. 31, 2021, Congress allowed the expanded program to expire. But there is still a small, essential window of opportunity. Last year’s Child Tax Credit is retroactively available to all families, even those who aren’t required to file taxes because they earn less than $12,500 (in single-income homes) or $25,000 (in dual-income homes). That means parents in Mississippi who have not yet received this benefit can still apply, but they have to act quickly.
The Mississippi Economic Inclusion Coalition is a group of eight organizations united to educate the community on economic issues and advocate for economic