Site icon The East County Gazette

U.S. Families May Get $1,500 Child Tax Credit in 2022

For six months, eligible families enjoyed a hefty $300 payment as part of an expansion included in the American Rescue Plan passed in March.

However, For the first time since July, families will not receive a $300 payment on January 15, 2022, according to the US Sun’s Report.

Nevertheless, Joe Biden’s administration is crafting a bill that would return the payment in February, with a back payment issued for the missed January installment.

The deadline for Congress to extend the $300 child tax credit payments into 2022 is December 28, and there has been no indication that the deal will be reached by then.

Democrats have pushed Congress to renew child tax credit payments in 2022, but West Virginia Senator Joe Manchin has opposed it.

Since the Senate has adjourned for the rest of this year and has not yet passed the bill, the IRS will not have enough time to process payments for January 15.

If the Build Back Better legislation is approved, fewer families will get monthly payments in the new year.

Read More: What to Do with Letter 6419 from the IRS?

Only joint filers that earn a combined total of less than $150,000 and heads of households making less than $112,500 will be receiving a check in the mail.

Parents of children ages six and under have received a monthly check of up to $300 for each child and a monthly check of up to $250 for children between 6 and 17.

The checks account for half of the enhanced credit – the other half is received when families submit their 2021 tax returns this year.

The total credit amounts up to $3,600 for each younger child and up to $3,000 for each older one.

Normal CTC used to be up to $2,000 for each child up to age 17, and parents would claim in yearly on their tax returns.

But since the credit became refundable, more people became eligible this year.

Before, the CTC was only partially refundable, meaning those below a certain income would become ineligible for the tax credit.

Now, 26million more children qualify for the full credits.

Exit mobile version