On Monday, the Internal Revenue Service (IRS) will distribute the fifth round of child tax credit payments ($15 billion to around 36 million families).
The IRS plans to release another round of inspections in 2017. As a result, parents have one more opportunity to register with the IRS for the checks. The following round will be issued in December. Families who file their taxes next year will receive CTC income, according to CNBC.
Low-income families who haven’t received the advance payments since they don’t file a tax return can sign up any time between now and Monday, Nov. 15 to receive a lump sum of $1,800 for kids under 6 and $1,500 for children between 6 and 17. They may also claim the entire value of the credit if they file a tax return in 2022.
How to Sign Up
To claim the child tax credit through the IRS, go to GetCTC.org. This site was created through Code for America, the US Treasury Department, and the White House.
You may also use a CTC update portal to apply for a tax credit at the IRS’s website. The credit is set to expire at the end of this year. To extend it another year as part of their $1.75 trillion Build Back Better bill, Democrats included a provision that keeps it in place until 2022.
Child Tax Credit Is Slated to Drop by Over $2,000 In a Few Years
However, even with that boost, the child tax credit will be cut from a maximum of $3,600 per kid in 2026 to $1,000 per kid by then.
By 2025, the Child Tax Credit (CTC) will increase from $1,000 to $2,000 as a result of a 2017 Republican-controlled Congress bill. In addition, the American Rescue Plan passed in March and boosted the CTC to $3,000 to $6,600 based on the child’s age.
That being said, 2026 does not necessarily indicate that Congress will embrace fiscal conservatism. If the CTC falls below $1,000 in the near future, Congress may once again vote to extend it for a brief period.
“There’s a long track record of the child tax credit is expanded temporarily, and when the deadline arrives it’s subsequently extended. So, as a result, I’m not sure we should assume that the whole tax code will return.” Elaine Mag, research associate at the Urban-Brookings Tax Policy Center,” told CNBC.