Why There Will Be No Child Tax Credit Hitting Your Bank Account This Month
If you are a parent, chances are you noticed a check from the IRS in the mail or hitting your bank account the past few months. The American Rescue Plan, which passed in March 2021, made these payments possible.
In 2021, the child tax credit increased from $2,000 per child up to age 16 to $3000 per child age 6-17 and $3,600 per child under age 6. Usually the child tax credit is something that parents claim on their tax return, but in 2021, parents were able to receive checks on a monthly basis from July through December totaling half the amount of the tax credit. The goal was to help parents pay for things their children needed when they needed it instead of getting the amount as a lump sum after filing their tax return.
Now it is 2022, and the temporary changes to the child tax credit have ended. Unless a bill is passed to extend the increased payments, the child tax credit will return to the way it was before 2021. While it is possible that the senate could pass another bill to extend the changes to the child tax credit, doing so is currently not the senate’s top priority.
If you received child tax credit payments in 2021, hold off on filing your tax return. You’ll want to make sure you have all the necessary paperwork in order to make sure you get your full refund. Watch the video below to learn what to look for in the mail and why it is important to wait until you receive it before filing your taxes.
Do you think the temporary changes to the child tax credit in 2021 should be extended in 2022? Did you receive child tax credit payments from the IRS in 2021? Do you prefer to get monthly child tax credit payments or to benefit from the full tax credit when filing your income taxes?