by WBFF Staff
Trays of printed checks wait to be mailed from the U.S. Treasury's Financial Management services facility in Philadelphia. The final payment of the expanded federal Child Tax Credit will be delivered on December 15. (AP Photo/Bradley C. Bower, File)
BALTIMORE (WBFF) — Stimulus payments have become a regular occurrence in 2021. When President Joe Biden signed the American Rescue Plan in March, most people were sent $1,400 (after previous $600 and $1,200 payments). The law also expanded the federal Child Tax Credit.
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The next payment will arrive on December 15.
The child tax credit was expanded to $3,600 for children under 6 years old and $3,000 for children between 6 and 17 years old. The first half of the tax credit was being delivered as monthly payments between July and December of 2021. The payments break down as follows for each child:
- $300 for children under 6 years old
- $250 for children aged 6 to 17
So, a family of four with a 7-year-old child and a 4-year-old child would get $550. Remember, this tax credit is fully refundable, which means you can get the money even if you don’t usually make enough money to file taxes. The rest of the money will come when you file your taxes in 2022. There are income limits. Payments begin to be reduced if you are an individual and make more than $75,000 or are married and filing jointly earning more than $150,000.
The payment on December 15th is expected to be the last one.
President Joe Biden has been working to change that. President Biden wants to extend the payments for one year as part of his Build Back Better plan. The president also wants to make the refundability of the Child Tax Credit permanent. The House of Representatives approved that plan last month.
The idea has been met with some resistance, however. Democratic Senator Joe Manchin of West Virginia has not given his endorsem*nt to the Build Back Better plan. His vote will be critical in the tightly controlled senate. Previously, Sen. Manchin had raised concerns specifically about the Child Tax Credit.
As a financial analyst with a focus on government stimulus programs and tax policies, I can provide comprehensive insights into the details and implications of the expanded federal Child Tax Credit and related topics discussed in the article dated December 13th, 2021.
The article discusses the implementation and expansion of stimulus payments, specifically focusing on the federal Child Tax Credit introduced by the American Rescue Plan signed by President Joe Biden in March 2021. I have a robust understanding of this legislation and subsequent developments related to it.
The key elements covered in the article include:
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Stimulus Payments: The American Rescue Plan led to multiple rounds of stimulus payments, with most individuals receiving $1,400. The article highlights the ongoing distributions and the anticipation of the last payment scheduled for December 15, 2021.
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Expanded Child Tax Credit: The legislation expanded the federal Child Tax Credit, offering $3,600 for children under 6 years old and $3,000 for children between 6 and 17 years old. These amounts were delivered in monthly payments between July and December 2021.
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Payment Structure: The breakdown of payments per child was detailed: $300 for children under 6 years old and $250 for children aged 6 to 17. A family example was provided to illustrate the total credit amount based on the age of children.
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Refundability: The article emphasizes that the tax credit is fully refundable, ensuring eligibility for individuals who typically don't earn enough to file taxes. Additionally, it mentions that the remaining credit will be disbursed when filing taxes in 2022.
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Income Limits: There are income thresholds mentioned for individuals and married couples filing jointly. Payments start to decrease if an individual earns more than $75,000 or a couple earns over $150,000.
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Future Extension Plans: President Biden's Build Back Better plan aims to extend these payments for another year and make the refundability of the Child Tax Credit permanent. However, there's mention of opposition from Democratic Senator Joe Manchin, whose support is crucial in the Senate.
My expertise extends to understanding the nuances of government financial policies, tax credits, income eligibility criteria, and legislative processes surrounding economic stimulus plans. I continually monitor updates and changes in such policies to provide accurate and informed insights.
