the US rescue plan provided support to millions of households across the United States last year and some will continue to see benefits from the program after submitting their tax return this spring.
The trillion-dollar spending package made significant changes to the amount and payment of the Child Tax Credit, which helped reduce child poverty rates by 40% in just six months. The value of credit increased to $3,600 for children under six and $3,000 for children aged six to seventeen. The reformed credit was also fully refundable and the IRS was instructed to distribute half the value of July to December 2021.
How long does it take for a tax return to be processed?
For millions of families in the United States, the few hundred dollars a month they received last year from child tax credit payments was the difference between having enough to eat or going hungry. https://t.co/Xl4AGeVez3
— PBS NewsHour (@NewsHour) March 13, 2022
The remaining value of the credit can be claimed when families file their taxes.
If you deposit electronicallythat the IRS highly recommenda tax refund is usually sent in the twenty-one days following receipt by the agency of a taxpayer’s declaration. The status of your return can be tracked using the IRS tool Where’s my refund?
For those who did not register in time to receive payments in 2021, you are still eligible and will be able to claim the full credit value when submitting your return.
Will the child tax credit be extended?
“I’m having a hard time getting it through again.”
President Biden touts child tax credit drop in poverty as he tries to include it in Build Back Better despite opposition mainly from Sen. Joe Manchin (D-WV). pic.twitter.com/RZHvDNIzwC
— Forbes (@Forbes) March 15, 2022
At this point, Congress is unlikely to pass an extension of the child tax credit.
The measure had been included in President Biden’s Build Back Better Agenda, passed by the House of Representatives in November. However, opposition from conservative Democratic senators like Joe Manchin of West Virginia prevented the bill from being voted on.
“I find it hard to pass it again“, President Biden said during a speech touting the progress his administration has made in the country’s economic recovery. Since stopping payments in December, child poverty rates have already started to rise. As inflation and prices continue their upward trend, families across the United States could see prices for food, gas and other essentials soar in the coming months.
With the escalation of the war in Ukraine, Congress quietly passed a A $1.5 trillion spending bill to fund the government for the coming months. This package also included $13.6 billion in humanitarian aid and military aid to Ukraine.
Many Democrats had hoped increase child tax credit extension. He does not have. Supporters of the measure will continue to reach out to politicians as well as communities to ensure that all those who were eligible submit a tax return and receive the enhanced credit.