Tax credit could take thousands of Detroit children above poverty line

DETROIT (FOX 2) - Raising children is expensive and if you have kids under 17 -- you will soon receive some cash from the expanded child tax credit. In Detroit, the program has the potential to raise 20,000 kids above the poverty line.

"If you have a child under 5, you get $3,600," he said. "If you have kids between 6 and 17, you'll get $3,000," said Mayor Mike Duggan.

To be eligible, any single person making less than $75,000 or a married couple less than $150,000. The money is from the Expanded Child Tax Credit within the American Rescue Plan.

"This is something I don't think people realize, that President Biden got passed in the American Rescue Plan," Duggan said.

But parents must meet the following criteria.

"You (must) have filed income tax returns for 2019 or 2020," Duggan said. "And if you have already filed your tax returns for 2019 or 2020, you put your children down as deductions, the chances are, the checks will start showing up in your account just like the stimulus check did."

But for parents who have not filed the appropriate paperwork, the city of Detroit and several agencies are partnering to ensure these parents get the help they need, starting with tax preparation.

"We won't charge for filing income taxes," said Kathleen Aro, president, Accounting Aid Society. "We are going to make sure you get all the refunds and credits you are entitled to."

Duggan wants eligible Detroiters to take part and plans to hold his own workshop on how to apply.

"I'm probably going to do a citywide address in two or three weeks, where I'll do what I normally do, I'll take out a PowerPoint and show everybody how to fill out forms, how you are going to get your money," he said.

To learn more about the program and tax preparation services go HERE.