Parents are set to get the last round of this year’s child tax credit payments today, December 15, 2021, meanwhile, uncertainty surrounds next year’s payments.
The current child tax credit, which was part of a $1.9trillion coronavirus relief bill signed by President Joe Biden in March, is only set to last until the end of 2021.
Congress has not yet passed legislation to ensure timely payments next year, and The Internal Revenue Service (IRS) has given it until December 28 to put forth the package.
If President Joe Biden’s $1.75trillion Build Back Better program is approved, CTC credits would be extended for another year.
To qualify, families need to make less than $150,000. Single parents who file as heads of households need to make under $112,500.
Typically, qualifying families can receive up to $300 per child per month.
But CTC payments received in 2021 could affect your 2022 taxes if you received an overpayment and the IRS didn’t adjust the amount on later payments.
If you received payments you didn’t qualify for the money will need to be paid back.
Meanwhile, many American students could receive an adverse impact as the holiday season draws near. This is because monthly federal student loan payments are also set to end on December 31, 2021.
