The Child Tax Credit was increased to $3,600 for children under the age of 6 and $3,000 for those between the ages of 6 and 17 when Congress passed the American Rescue Plan in March. Americans were credited differently as a result.
The Child Tax
To help the country recover from the devastation caused by COVID-19, the American Rescue Plan Act of 2021 was passed. Nearly $2 trillion is the most expensive economic rescue package in American history. Joe Biden signed the Act into law back in March, and it has since distributed millions of dollars to American citizens.
One-time payments have been replaced by monthly payments totaling $300 for children under six and $250 for other eligible children. During July through December 2021, half of the total credit amount will be distributed into bank accounts. The majority of eligible parents have already received these payments, and the final one should arrive in December, according to Newsweek.
The Catch-Up Payment
According to BGR, for the most part, recipients will receive the same amount they have received in the previous five checks. In other words, each eligible child will receive a few hundred dollars. In the meantime, these checks are only now beginning to arrive for some families. In December, those who signed up by November 15 will receive a “catch-up” check from the IRS.
Families will receive a one-time payment in December for what it took them six checks to receive. When it comes to the child tax credit, recipients must remember that they’ll only receive an advance payment for half of what they’re entitled to. When they file their federal income taxes next year, they’ll be able to claim the second half of the credit.
According to AS, the Build Back Better framework will extend the enhanced Child Tax Credit, which has been paying families monthly since July. And that the House of Representatives has already passed it. The Senate must still approve the Build Back Better plan.
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