Even as inflation surges to the greatest level in a decade, millions of families who received tax credit are facing their first month without money from the federal program since July
The Final Child Tax Credit Payment for 2021 Will Be Delivered to 36 Million Families by the IRS
The first half was distributed in monthly installments from July to December, with 300 dollars going to the children under the age of six and 250 dollars going to those aged six to seven, but the final cheque was mailed out last month. When families file their 2021 tax returns in the spring, the second half will be delivered as a lump amount. According to the IRS, 36, million families, or nearly 60 million children, received the payment each month.
The Child Tax Credit temporarily was briefly increased by Democrats in early 2021 as part of a wide coronavirus relief package, but it expired at the end of the year. Low-and middle- income parents might receive up to 3,000 dollars for each child aged 6 to 17 years old, and 3,600 dollars for each child under the age of 6. Individuals earning more than 75,000 dollars and married couples earning more than 150, 000 dollars were no longer eligible for payments, which were income-based.
Longevity of the Child Tax Credit
The child tax credit’s expiration might hamper Democrats’ chances in the 2022 midterm elections, as the more generous mention version of the child tax credit was a highlight of their campaign plan.
Although President Biden and most congressional Democrats hoped to extend the enhanced program for at least a year with the package of the 1.7 trillion dollars Build Back Better bill, momentum for the massive social spending and climate bill sank last month after moderate Sen. Joe Manchin, d-w.Va., abrupt;y withdrew his support citing concerns about inflation and the growing federal debt. Due to the havoc caused by the coronavirus pandemic some free tax preparation locations are still working virtually, or with lesser staff, while others don’t have the capacity to operate outside of the typical filing season.