5

Experiences of Families and Nonprofit Organizations with the EITC and CTC Policies in 2021

A key component of the committee’s statement of task was to include input from those with lived experience accessing and using tax credits to support their families. This chapter begins by describing the approach used in qualitative research for collecting information about people’s experiences and decision making around their participation in social programs like the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), briefly reviewing the existing, albeit limited, qualitative research on the EITC and CTC under the American Rescue Plan Act (ARPA) in 2021. Information gathered during a series of four listening sessions is then summarized: three sessions involved parents (primarily mothers) from diverse regions and backgrounds, recruited by nonprofit organizations to share their experiences with the CTC in 2021, and one session involved nonprofit leaders who assisted families in accessing the CTC in 2021. The insights from these sessions are compared with findings from prior qualitative research, and their implications and limitations are discussed.

This chapter draws on listening sessions conducted with parents and nonprofit leaders across the United States to understand their experiences with the policy changes under ARPA in 2021, especially the CTC.¹ These listening sessions offered firsthand perspectives on the role of information in access to and take-up of the EITC and CTC in 2021, how participating

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¹Because the target group for the listening sessions was low-income parents with children under age 18 or service providers that targeted this group, the discussions were focused on provisions of the CTC, although questions about access and facility with tax filing were relevant to both the EITC and the CTC.

families used the benefit, and how nonprofits supported outreach and participation among eligible families, as well as general perspectives on the promises and challenges involved in claiming these benefits in 2021. While not generalizable, these listening sessions reflect diverse geographic and demographic experiences and highlight patterns that complement and largely align with broader evidence on the policies under ARPA in 2021. Main messages from this chapter are highlighted in Box 5-1.

QUALITATIVE RESEARCH AND PRIOR EVIDENCE ON PARTICIPATION IN THE CTC

Qualitative methods offer advantages for understanding how and why families choose to participate, or not, in social programs like the CTC. By focusing on lived experiences, these approaches can reveal how families interpret eligibility, navigate enrollment, and weigh the benefits and risks of participation, learning, and decision-making processes difficult to fully capture with quantitative data (Denzin & Lincoln, 1994; Maxwell, 2013; Padgett, 2016). Qualitative methods prioritize depth and context over generalizability (Ayres et al., 2003; Creswell & Creswell, 2018; Padgett, 2016; Patton, 1999; Polit & Beck, 2010), making them well suited for unpacking complex decision-making processes (Creswell & Poth, 2016).

Interviews or focus groups can highlight how perceptions of stigma, distrust, bureaucracy, or past experiences can influence participation (Ford & Goger, 2021). Qualitative inquiry also captures “thick descriptions” (Geertz, 2008)—detailed, context-rich accounts that can reveal complex dynamics shaping behavior. By centering lived experiences, qualitative approaches can uncover assumptions embedded in policy design (Denzin, 2008; House, 2008) and help bridge the gap between research and policy, leading to recommendations that reflect the needs of diverse populations (Denzin, 2008; House, 2008; Sallee & Flood, 2012).

In 2021, some parents reported learning about the CTC through traditional and social media channels. For instance, Waxman et al. (2021) found that nearly all respondents had heard of the monthly ARPA CTC payments in 2021 through television news or social media platforms. These channels were particularly effective in reaching a broad audience, including individuals who might not typically engage with tax-related information. However, this approach left certain groups, such as non-English-speaking or rural families, potentially without specific information on eligibility requirements.

Community-based organizations were important in disseminating information about the CTC Policy in 2021, particularly for harder-to-reach populations. Nonprofit agencies, many of which had already established trust with local communities, provided information and offered application support (Godinez-Puig et al., 2022; Walker et al., 2022). Strategies

included email outreach, virtual workshops, and one-on-one consultations to overcome barriers families might face (Walker et al., 2022). This community-focused approach aligns with previous research on the EITC, which identified the importance of nonprofit-led outreach to increase participation among eligible low-income families (Gudmunson et al., 2010; Mammen et al., 2011).

One challenge in 2021 was reaching families eligible for the CTC but who did not file taxes, such as very-low-income households and immigrant families hesitant to engage with federal programs (Cox et al., 2021). Expanding outreach to these families was a focal point of community-led initiatives. For instance, nonprofits collaborated with local organizations to provide targeted support to alleviate concerns and clarify family eligibility criteria (Wielk & Snyderman, 2024). An example of this is the innovative outreach efforts used in Tulsa’s Birth through Eight Strategy, which successfully connected low-income and immigrant families to the CTC, particularly those unfamiliar with the tax system (Walker et al., 2022).

The provisions of the CTC in 2021 bolstered household resources, enabling many families to cover essential expenses and buffer against hardships. For instance, Dugger et al. (2023) found that families viewed the changes in the CTC in 2021 as instrumental in improving their ability to meet basic needs. Similarly, Hamilton et al. (2024) found that families used the CTC to address immediate needs and financial obligations.

Moreover, the CTC in 2021 had a pronounced impact on families raising children with disabilities. These families often have high financial burdens due to increased health care costs and caregiving responsibilities. Brugger et al. (2023) found that the CTC offered these families support beyond basic costs, allowing them to allocate resources relative to their unique needs.

HOW DID PEOPLE FIND OUT ABOUT THE ARPA CTC IN 2021?

To date, limited literature exists on COVID-19 pandemic (hereafter, “pandemic”) provisions, including the 2021 CTC. Consequently, prior research on awareness and access to federal tax credits is primarily based on investigations of the EITC and CTC prior to 2021. Factors such as locale, state of residence, demographics, and information access influenced awareness and take-up of the EITC and CTC prior to the implementation of the ARPA provisions in 2021. For example, rural families faced more barriers to claiming the EITC than their urban counterparts due to limited access to information, tax preparation services, and social networks that facilitate awareness of the credit (Gudmunson et al., 2010; Mammen et al., 2011).

Urban residents, in contrast, tend to have better access to information through nonprofits, which often collaborate with local government to conduct outreach, share information, and, in some instances, provide free or low-cost tax preparation services. These efforts facilitate awareness and knowledge (Gudmunson et al., 2010; Snavely & Tracy, 2002; Walters, 2020), while access to affordable tax preparation can help in both filing for and understanding tax credits (Tach & Halpern-Meekin, 2014). Nonprofit outreach can enhance awareness of tax provisions, particularly among immigrants and people with limited English language proficiency. However, some view such tax credits as complex and challenging to navigate (Tach & Halpern-Meekin, 2014). Challenges with navigating receipt of tax credits are especially pronounced for immigrant families, those who have less education, and those with limited English language proficiency, all of whom may struggle with eligibility requirements or have concerns about their rights to claim these credits (Caputo, 2010; Fano et al., 2024;

Godinez-Puig et al., 2022; Hamad et al., 2022; Mammen et al., 2011; Thomson et al., 2022).

Before the 2021 ARPA expansion, the CTC primarily benefited middle- and higher-income families due to eligibility and filing requirements that reduced access for low-income households. Some eligible families, particularly nonfilers, immigrant households, and families with limited English proficiency, were often unaware of the CTC or faced barriers preventing them from claiming it (Lee, 2020; Michelmore & Pilkauskas, 2023). Moreover, families with little to no tax liability could not claim the full benefit due to a $2,500 earnings threshold required to receive any refundable portion (Tax Policy Center, 2021). This structure excluded some economically vulnerable households, particularly nonfilers and very-low-income families unaware of their eligibility (Goldin & Michelmore, 2020; Maag & Airi, 2020). Moreover, low-income families often lack familiarity with the CTC due to limited engagement with the tax system, resulting in reliance on community organizations or word of mouth, which can foster knowledge. However, these can also be unreliable sources for tax-related information. The complexity of administrative processes poses another barrier to claiming the CTC, such as understanding eligibility rules and navigating the filing process, especially for low-income and immigrant families (Fano et al., 2024; Feldman et al, 2016; Godinez-Puig et al., 2022; Wielk et al., 2022).

LISTENING SESSIONS

To gather perspectives from families and nonprofit leaders with lived experience accessing or helping to access the CTC in 2021, the committee collaborated with Ascend at the Aspen Institute to conduct a series of listening sessions. These sessions, all conducted in a virtual Zoom setting, were designed to capture the experiences of families and nonprofits with the CTC in 2021. While not intended to be representative or generalizable accounts, these listening sessions provided the committee with firsthand descriptions that offer illustrative insights into the reach, barriers, and impact of the changes to the CTC in 2021 on low-income and working-class families.

Ascend collaborated with nonprofits across the United States to recruit parents from diverse demographic regions and family backgrounds. The parents who participated represented nine states and the District of Columbia, were primarily mothers ages 21 to 48 years with children ranging from infancy to high school during the 2021 tax year, and included families from rural areas, southern, Midwestern, and coastal states, and who were immigrants or residing with immigrants. Each 60- to 90-minute listening session, moderated by committee members, included five to seven participants. Each parent listening session followed a set of core questions:

• Initial awareness: How and from whom did you first hear about the option for monthly CTC payments in 2021 under ARPA?
• Assistance: Did anyone help you with filing for the CTC? If so, who provided assistance, and in what ways?
• Process Perspectives: What was the process like for you when claiming the CTC?
• Impact: Did the monthly CTC payments impact your family, work, or financial situation? If so, in what ways?
• Suggested Improvements: If you could change or improve the CTC, what would you suggest?

A separate listening session was conducted with nonprofit leaders whose organizations served parents eligible for the CTC in 2021. This session included representatives from local and national organizations across several states, including Illinois, Washington, DC, California, and Michigan. Guiding questions and participant responses focused on outreach efforts, coordination with partner agencies, perceived successes and challenges in helping families learn about or claim the CTC in 2021, and recommendations for future improvements.

Though not designed to be representative or generalizable to the experiences of low-income families accessing tax provisions, the committee found that themes derived from these listening sessions offered important context for interpreting the impact and improved policy implementation of the CTC in 2021.

FINDINGS FROM THE LISTENING SESSIONS

While the committee’s recruitment strategies through Ascend revealed valuable parent and nonprofit perspectives, they were not intended to follow rigorous qualitative methods that would yield a clearly defined sample suitable for peer-reviewed research. As such, insights from the listening sessions, while informative, offer an illustrative rather than conclusive view of experiences among CTC-eligible families and nonprofits who target families for CTC outreach, information, and, in some instances, assistance with filing. Still, these sessions provided the committee with meaningful, firsthand accounts of how the CTC under ARPA in 2021 affected family well-being and the role of nonprofits in disseminating information, particularly to hard-to-reach populations, offering practical insights that may inform future program evaluations and policy discussions. Despite these limitations, information gleaned from these listening sessions largely mirrored existing literature while revealing some new insights, as discussed below.

Positive Impact of the CTC on Families’ Economic Well-Being

Across listening sessions, parents consistently described the monthly CTC payments under ARPA in 2021 as an economic buffer that helped alleviate economic hardship during the pandemic. CTC monthly payments supported essential needs, such as groceries, transportation, child care, and utilities, and reduced anxiety about unexpected costs. One parent highlighted the value of the CTC during this period:

Nonprofit leaders also noted that the CTC helped economically vulnerable families to save or pay for essential costs like rent, which was particularly helpful to those experiencing unstable employment:

Awareness and Information Channels

Listening session parents reported learning about the provisions of the CTC in 2021 from various sources, including social media (particularly TikTok and Facebook), word of mouth, and traditional news. Many parents reported initially learning about the CTC in 2021 from local or national news outlets, while others relied on community networks, nonprofits, social media, and family members. One parent shared:

Others described first learning about the CTC from family members’ friends, or from their tax professional:

Others heard about it from their social services:

The role of popular social media sites in alerting parents to the CTC is relatively new, as earlier scholarship on tax provisions largely occurred prior to the advent of these sites. However, parents often followed up with more trusted sources to confirm social media information:

Some parents in the south indicated that while they received CTC information from social networks or social media, they had to rely on these due to a dearth of trusted sources to turn to where they lived:

Nonprofits continued to play an essential role in disseminating tax provision information for the CTC under ARPA in 2021 through one-on-one support, workshops, and digital outreach. Nonprofit leaders who attended the listening session noted the success of using “CTC chat-a-thons” and virtual office hours to answer questions, revealing new and innovative practices in engaging their client bases:

Several nonprofit leaders also noted their efforts to collaborate with other organizations to disseminate CTC information and free tax services more effectively:

Challenges with Filing and Misunderstandings

Some parents initially misunderstood CTC eligibility under ARPA in 2021 and the implications of monthly payments, aligning with past research on the CTC prior to 2021. A common concern was whether they would need to repay the benefit or if it would reduce a future tax refund:

Nonprofit leaders indicated that they worked with families who were unfamiliar with the tax system or who had not filed taxes in prior years and needed more guidance:

Regional and Access Disparities

Accessing CTC information and support in 2021 varied by region. Aligning with prior research, parents in northern states and urban areas reported greater access to information, while those in southern states and rural areas faced challenges. One parent participant from a southern state explained:

The context of place also impacted how families used the CTC. For example, a nonprofit leader from a Midwest state’s major city stated:

WHAT ELSE DO FAMILIES NEED?

Increased Flexibility in Payment Options

Participants across sessions expressed a desire for choice in how the CTC is delivered. Some preferred monthly payments because it reduced uncertainty about making ends meet each month, while others preferred

the lump sum because they knew they could use it to address significant expenses. As a parent from the rural listening sessions said:

Parent perspectives on payment structure seemed to diverge relative to education and income, with more economically stable parents preferring lump-sum payments for larger expenses. In contrast, lower-income parents reported preferring monthly payments as they viewed this as better at enabling them to make ends meet.

Adjustments to Cost of Living

Parents across sessions suggested increasing the monthly CTC amount to help offset the impact of inflation on everyday necessities such as groceries, school supplies, and transportation costs, as reflected by a rural parent:

This was echoed by a parent from the immigrant and mixed-status families session:

Better Outreach and Communication

Parents with young children and rural parents indicated they needed more direct communication from the Internal Revenue Service (IRS) or trusted nonprofits. Even those who first learned about the provisions of the CTC in 2021 from social media often checked this information with trusted sources like family, friends, and nonprofits, as they trust social media less than “official sources,” although most noted that information, particularly from the IRS, was less available.

Support for Rural Areas

Aligning with past research on rural areas receiving less information on tax provisions, parents from the rural listening session noted the difficulties in accessing information and support in their rural communities,

particularly due to inadequate internet access, as stated by one of the parents:

These participants suggested community centers and libraries in rural areas for information distribution.

Transparency Regarding Tax Implications

Missing from existing literature is information on the CTC and parents who are entrepreneurs or have partners who are entrepreneurs. In the listening sessions, these parents commonly reported opting out of monthly CTC payments due to fears of how it would affect their tax obligations, preferring the known impact of a lump sum. Several other parents reported being surprised that monthly CTC payments reduced their typical tax refund, impacting budgets. They suggested more transparent communication could prevent future confusion and help families make informed choices, as illustrated by a parent with young children:

Fears About Taking up the CTC in 2021

Also missing from the existing literature on tax provisions but highlighted in parent listening sessions are fears some had about taking up the CTC in 2021. Several parents reported concern that taking up the CTC in 2021 would result in them having to repay the benefit, as reflected by two participants:

Parents’ suggestions to alleviate these and other fears included a more concerted effort to disseminate readily accessible information, with IRS mailers being the most common preference. In contrast, others wondered why the federal government did not conduct widespread television or social media advertisements to reach a broader swath of CTC-eligible families.

Nonprofit leaders also described hearing from clients about their fears that taking up the CTC in 2021 might affect their existing benefits:

SUMMARY OF KEY INSIGHTS AND IMPLICATIONS

The insights from this chapter illustrate the role that the CTC Policy in 2021 played in reducing financial hardship across a wide range of family types, regions, and income levels. While the listening sessions were not intended to yield representative samples or generalizable findings, they highlight consistent patterns across geographic and demographically diverse families and nonprofits. Parents emphasized the value of the CTC in 2021 in meeting basic needs like housing, food, utilities, and child care, as well as providing a financial buffer during a period of exceptional economic uncertainty.

The listening sessions also revealed ongoing challenges with CTC awareness, access, and administration. Many parents reported first learning about the provisions of the CTC in 2021 through their social networks, like family, friends, and nonprofits, rather than government sources. Social media, especially platforms like TikTok and Facebook, also played a notable role in parents’ reports of where and from whom they learned about the CTC policy in 2021. Still, most parents said they followed up on social media information with more trusted sources for confirmation.

Several key takeaways from these sessions highlight what parents and nonprofit leaders shared. Both groups emphasized several consistent themes that illustrate the strengths and limitations of the rollout of the CTC under ARPA in 2021. For many families, especially those with fluctuating or unstable incomes, the monthly CTC payments were described as critical to their finances, with the predictability of the payments helping them manage recurring costs such as rent, groceries, and utilities. At the same time, parents expressed a desire for flexibility; some parents preferred monthly payments to meet everyday needs, while other parents valued the lump-sum payment for larger expenses. Variations in payment preferences underscore the potential value of offering eligible families a choice in how they receive the benefit.

Participants also described confusion about the tax and benefit implications of receiving the CTC in 2021. Some worried that it might reduce their tax refunds, require repayment of the benefit, or risk eligibility for other public programs. These concerns were more common among families who were self-employed, undocumented, or living in shelters—groups that disproportionately reported opting out of the CTC monthly payment provision under ARPA out of caution. Nonprofit leaders confirmed observing similar patterns, sharing that it was not uncommon for their staff to field questions from families trying to weigh the risks of taking up the CTC.

Access to adequate CTC information varied by geography. Participants from rural areas and southern states reported more challenges in learning about the CTC. In some areas, limited internet access, fewer local nonprofits, and low trust in institutions meant that these parents were more likely to rely on social networks or social media. Yet even when participants learned about the CTC in 2021 through social media, they also often reported they would seek out trusted sources to verify this information, like the IRS, tax professionals, or nonprofits. These layered information-seeking strategies were common across the listening sessions and reflect the promise of trusted information sources and multiple modes of outreach, not only for the CTC but also for disseminating public program information more generally.

Taken together, these insights complement the broader quantitative findings in this report. While the quantitative data reveal how the benefits of the CTC policy in 2021 were distributed across income levels, the listening sessions demonstrate how monthly CTC payments functioned as a buffer for lower-income families during heightened need. They also shed light on the barriers some families faced in accessing the benefit—barriers not always visible in administrative or survey data. Overall, these perspectives suggest that future CTC policy design may want to consider reducing administrative burden, enhancing information dissemination, particularly in rural areas, and offering families flexibility in how they receive the CTC.

CONCLUSION

As described by parents in listening sessions conducted by the committee, the added support provided to parents during 2021 was a critical financial buffer that helped families meet basic needs like housing, food, and utilities during a period of economic uncertainty. Despite the CTC’s positive effects, the listening sessions also highlighted persistent challenges: confusion over tax implications, limited information for non-English speakers and rural communities, and fears about losing eligibility for other benefits. Parents expressed a strong preference for having flexible payment options (monthly or lump sum) and recommended clearer, more proactive communication from trusted sources like the IRS. Overall, the findings suggest that to improve future expansions of the CTC, it is important to prioritize reducing administrative burdens, improving targeted outreach, and offering flexibility to meet families’ diverse needs.

Understanding the full impacts of the provisions of the CTC under ARPA in 2021 requires recognizing that families also received support from a range of other COVID-19 pandemic-related policies and programs. The committee shifts next to the broader pandemic policy environment that shaped these experiences.