The beneficiaries of the advance monthly child tax credit payments originally set to end after three more checks this year may be looking at an extended payment until 2025, according to a media report.
That means that after the families were issued their third child tax credit check this week, they are originally expected to just have three more payments in 2021 and a larger tax refund in 2022, according to the American Rescue Plan revised to adapt to the needs during the pandemic.
According to the original arrangement during the pandemic, struggling family households are set to receive 50% of the total credit in advance monthly installments, and the rest with a tax refund in 2022. That means a total of up to $3,000 annually for each child between ages 6 and 17, and up to $3,600 annually for each child under age 6. The credit is also fully refundable so parents don’t exactly need an satisfy a certain income requirement to qualify.
With the latest piece of Democratic legislation in the House, lawmakers have proposed to turn the initiative into becoming a part of a massive $3.5 trillion spending plan to address the needs of low-income families and help alleviate, if not reduce child poverty, which could continue until 2025.
According to the reports, over 400 economists signed a letter to the Congress calling on the legislators to make the initiative involving enhanced child tax credit payments permanent. The letter noted that the benefit would help families with immediate necessities, drastically improving the children’s health and education.
According to the reports, the chance that the expanded credit could be extended by at least a few years until 2025 would also allow low-income families who don’t earn enough to owe taxes to get the benefit.
In a recent interview, Senator Joe Manchin of West Virginia said he’d prefer that parents be eligible to receive the credit only if they work and file taxes.
However, the congressional Democrats remain divided over the issue, with some lawmakers looking to approve its extension in the spending bill through a process known as budget reconciliation. Other Democrats are also proposing that the current child tax credit payment program is extended until 2024 instead, and with the amount of money lesser than this year’s payments, and equivalent only with the lower amounts from prior years.
Meanwhile, the Bipartisan Policy Center, a Washington-based think tank has put out its own proposal for permanently expanding the child tax credit.
However, until it becomes a finalized legislation, there are still several deadlines for the remainder of this year’s credit that parents should be aware of.
Some of these deadlines and reminders that families need to take note of include:
- For families who are now choosing to opt out of the advance payment program, they need to do so before Oct. 4.
- It’s also a good idea for families to update their banking details or mailing address through the IRS Update Portal sooner rather than later.
- IRS has three more rounds of advance partial payments to send: on Oct. 15, Nov. 15, and Dec. 15 for payment in 2021, and the Tax season 2022 for the remainder of the money.
- IRS opt-out need to be declared about two weeks ahead of the payment dates, otherwise the changes will take effect with the next round of checks.
- If you opt to unenroll and later change your mind, you’ll be able to opt back in by late September.
- The remaining dates by which you would need to unenroll are as follows: Oct. 4 (for October payment), Nov. 1 (for November payment), and Nov. 29 (for December payment).
Also Read: IRS Update: Frequently Asked Questions And Answers For Advance Child Tax Credit
