During the worst of the coronavirus pandemic, expanded Child Tax Credit payments made a significant difference in the lives of millions of American households. According to the Columbia University Center on Poverty and Social Policy, between July and December 2021, payments under the enhanced Child Tax Credit helped 3.7 million children escape poverty.
The Center on Budget and Policy Priorities notes that the $5.1 trillion in total aid during the pandemic helped make the COVID-19 recession the shortest in history and fueled an economic recovery that brought the unemployment rate down from 14.8% in April 2020 to below 4%. If rescuing millions of children from poverty is not enough to appease the critics, as per The Motley Fool via MSN.
How to Claim Remaining Child Tax Credit Payments?
Fortunately, it's still possible to get any missing stimulus funds. You can submit a 2021 tax return now to determine your eligibility for the 2021 Child Tax Credit or your stimulus payment based on your circumstances.
In March, MPs passed the third round of stimulus checks, each having a maximum value of $1,400. According to some experts, a lump sum refund of more than $10,000 may be due to parents who did not receive Child Tax Credit payments. For people with modest salaries, that is a sizable payday.
You might be curious whether you can still receive the Child Tax Credit if your income was so low in 2021 or 2022 that you weren't required to file returns, and the answer is yes. So, proceed quickly to collect your prize if you think you are entitled to that money. You should also be aware that obtaining payment for the child credit has no bearing on any other government assistance you may be receiving, such as housing or food benefits.
According to The Ascent, the enlarged Child Tax Credit was made specifically to not limit eligibility for these programs, so you should feel confident in pursuing the money that is legally yours. The typical Child Tax Credit was boosted under the Child Tax Credit Expansion from $2,000 (usually credited when taxes were filed) to $3,600 for children under the age of 6 and $3,000 for children ages 6 to 17.
Half of the Child Tax Credit ($1,800 or $1,500) was distributed between July and December 2021 in six equal payments if a parent or legal guardian chooses to participate.
Each kid under the age of six received a monthly payment of $300, and each child in a household up to the age of 18 received a monthly payment of $250. When households submitted their 2021 tax returns, the remaining half of the tax credit was reimbursed.
Check your eligibility if you have a child who qualifies but did not receive Child Tax Credit payments. Your AGI must be less than the following criteria for you to qualify as a Single Filer: $75,000; Married Couple Filing Jointly: $150,000. If your AGI is below the following thresholds: Single Filer Up to $200,000; Married Couple Filing Jointly Up to $400,000, you are qualified for partial payments.
Tax Filing Deadline
If you qualify, notify the IRS by submitting a 2021 tax return. File a return even if you are not generally required to do so. The deadline for people who requested an extension to file their returns is Monday, October 17. Do not let the fact that you have not requested an extension prevent you from filing your return.
The IRS's ability to pay your Child Tax Credit depends on them having the most recent information. You can file a straight forward tax return by going to ChildTaxCredit.gov if you believe you qualify for a COVID-19 stimulus payment or the 2021 Child Tax Credit and haven't already received those monies.
Meanwhile, President Joe Biden referred to the expanded Child Tax Credit as one of the most successful programs in the US during the White House Conference on Hunger, Nutrition, and Health. Recent census data indicate that the Child Tax Credit program has reduced poverty, by over 40%.
Despite the program's success, it wasn't renewed. Now, a coalition of senators led by Michael Bennet, Sherrod Brown, and Cory Booker is advocating for the renewal of this credit, which hasn't been open since last December. The reportedly correct response looks to be to include this in the year-end tax agreement following the November midterm elections, according to Marca.
