Monthly Child Tax Credit Payments Are Over. Here Are Some of Its Replacements!
The child tax credit advance for December went to over 36 million families.
President Joe Biden signed into law the $1.9 trillion American Rescue Plan in March 2021 that provided those checks as a temporary measure.
According to Fortune, as part of the economic aid package, the plan raised the child tax credit from $2,000 to $3,000 for dependents ages six to seventeen for one year. Children age five and under received a credit of $3,600.
Now, these lapsing benefits are gone, but what will replace them? Currently, the child tax credit for each dependent under 17 will be $2,000 in 2022.
Congress failed to extend the enhanced benefit or the monthly payments, so the benefit is set to revert.
Nevertheless, the IRS hasn’t yet released the income cutoffs for the 2022 benefit.
Additionally, Congress still has the option of enacting legislation before the child tax credit returns to how it was before 2021.
Democrats have been working on a reconciliation bill for over six months known as the Build Back Better plan.
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A recent version of the bill proposes to extend the 2021 child tax credit for another year.
Sen. Joe Manchin (D-W.Va.) has remained opposed to the size of the bill as well as the impending extension of child tax payments.
It would take the support of every Democratic senator to pass a reconciliation bill in the face of united Republican opposition.
Even so, the Democrats are tied 50-50 in the Senate and will need President Joe Biden to break the tie.
Consequently, Democratic leadership will not be able to pass the bill without Manchin’s support.
In discussions with the White House before publicly opposing the bill, Manchin said he would support the continuation of the monthly child tax credit payments provided parents were required to work and payments were limited
Millions of Americans would lose out if Manchin got his income cap of $60,000.
Individual filers earning less than $75,000 per year and married couples filing jointly earning up to $150,0000 are eligible for the enhanced child tax credits this year.
People earning more than that could still receive a $2,000 credit.
But, a household income with over $400,000 worth of income and a single filer income of over $200,000 are canceled out for the credit.
