You Could Get $1,800 Even If Child Tax Credit Ends
By the end of December 2021, about 36 million families who received child tax credit (CTC) final advance payment might be disturbed about the fate of the credit if President Joe Biden’s does not get Senate’s approval for his Build Back Better $2trillion spending bill which will extend the payment into 2022.
Democrats in the Senate, however, have been struggling to convince Joe Manchin to support the bill. The bill needs the support of all 50 Democrats to pass the evenly divided Senate, and Manchin is the lone holdout.
Despite Manchin’s strong refusal to vote for Build Back Better, the Democrats haven’t given up. New Democrat Coalition Chair Suzan DelBene on Sunday in a statement said, “Failure is not an option.” Senate Majority Leader Chuck Schumer in a message to his colleagues in the Senate said: “We are going to vote on a revised version of the House-passed Build Back Better Act – and we will keep voting on it until we get something done.”
The prolonged standoff will result in families being unable to receive payment beginning from January 15.
Families that meet the income eligibility requirements and have received payments between July and December of this year, can expect to receive up to $1,800 for each child age 5 and younger, or up to $1,500 for each child between the ages of 6 and 17, when you file your 2021 taxes.
Read More: How to Avail American Opportunity Tax Credit Up to $2,500?
Those who opted out of receiving payments before the first check went out, will get the full amount you qualify for at once — up to $3,600 per child under 6 and $3,000 per child 6-17.
Payments you missed due to IRS errors or because you unenrolled should be included with your tax refund.
Missing money may arrive with your December payment. But if it doesn’t, you can either wait for the issue to be resolved when you file your taxes or you can file a payment trace with the IRS. Before you do that, track your check to make sure it’s not already on the way.
If you gained a dependent since you last filed taxes, you will need to file it in your next tax filing.
If you received an overpayment and the IRS didn’t adjust the amount on later payments. You’ll have to pay this back.
Your income changed, and you didn’t report it to the IRS. This could result in a larger or smaller tax refund or you owing the IRS, depending on if your income was higher or lower than what the IRS used to calculate your payment.