President Joe Biden believes that there is no more excellent economic engine than the American people’s ability to work hard and think creatively. For far too long, the economy had benefited wealthy individuals while failing to help those with fewer means. As President, Joe Biden vowed to restore the middle class as the backbone of the American economy, according to the White House.
Build Back Better Child Tax
The Build Back Better Act, which the House of Representatives passed, could mean monthly payments for some Americans as early as 2022. The Democratic Party has agreed on a framework for President Biden’s Build Back Better social and environmental legislation. However before the passing, months of intra-party negotiations, some of the $3.5 trillion spending plan proposals have been slashed or eliminated.
The Child Tax Credit was increased to $3,600 for children under the age of 6 and $3,000 for children between the ages of 6 and 17 when Congress passed the American Rescue Plan in March. It also changed how Americans were credited. Instead of a one-time payment, many Americans have been receiving half their estimated credit in monthly payments of $300 for each child under the age of six and $250 for all other eligible children, as per Newsweek.
To Be Eligible
For the person claiming the child to be eligible, they must have filed a 2019 or 2020 tax return or used the IRS’s non-filers tool on their website. According to Fox News, in addition to extending the monthly payments, the Build Back Better plan also expands the number of people who are eligible for a payment. The law currently allows parents who do not have social security numbers to receive a payment if their qualifying child has one. All children born in the United States but whose parents are undocumented are included in this category.
As part of the new antipoverty measures, the child tax credit and the earned income tax credit will receive a total of $200 billion in funding. When discussing the extension of the payments, Sen. Joe Manchin previously caused controversy by saying that he would not support the act extension without any substantial changes. The Senate must still approve the Build Back Better plan.
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