Child tax credit boost could come back to millions of families under new proposal

MILLIONS of families are struggling without the expanded monthly child tax credit payments – but there is now a glimmer of hope that it could return.

Under the American Rescue Act, child tax credits were temporarily increased to $3,600 from $2,000.

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Failure to extend expanded tax credits pushed 3.7 million children back into poverty

From July to December 2021, eligible families received payments worth up to $300 per child each month.

However, the $300 monthly payments lapsed as President Joe Biden failed to convince his party’s corporate wing, including Senator Joe Manchin of West Virginia, to vote for an extension. expanded child tax credits.

As a result, 3.7 million children have been pushed back into poverty, according to a study by the Colombia University.

Although there is new hope that the maximum child tax credit benefit could be further increased under a new proposal, there could be a major change in qualification.

We break down what is included in the proposal and who would qualify.

What’s in the proposal?

The proposal comes from Republican Senator and former 2012 presidential challenger Mitt Romney under the Family Security Act.

The Utah senator’s bill would increase the maximum monthly child tax credit payments to $350, up from the expanded level of $300 in 2021.

Thus, the maximum annual tax credit for children would be increased to $4,200.

In addition, families would receive $250 per month for each “school-aged child”.

As for income eligibility, single filers earning $200,000 would qualify, while joint filers can earn up to $400,000 per year.

Additionally, eligible families could begin receiving payments four months before the child is born.

According to Mr. Romney, the bill would “immediately” lift 3 million children out of poverty.

However, there is one issue that may not resonate well with everyone.

If the bill became law, there would be a work requirement, which Mr. Manchin was in favor of.

In other words, parents and guardians would have to be employed to get the monthly benefits, although details are unclear on how many hours you would need to work to qualify.

Additionally, it’s unclear whether enough Republicans would support the measure — given that no party members voted for the Rescue Act, which included the $3,600 child tax credit.

But of course, some Democrats are opposed to such a working mandate.

“As I’ve said in the past, work requirements don’t work, as study after study has shown,” Sen. Michael Bennet, Democrat of Colorado, told NBC News.

“We shouldn’t punish children just because their families are struggling to find work, especially during a pandemic.”

What is the Child Tax Credit in 2022 currently?

It’s important to note that Congress still has time to reinstate or increase the child tax credit at some point in 2022.

However, time is running out and child poverty is increasing due to inaction.

Currently, the child tax credit is expected to return to the previous level of $2,000 in 2022.

In 2020, you were eligible for the full child tax credit payment if you earned $200,000 or less, or $400,000 for married couples.

Meanwhile, eligible families who haven’t yet can claim up to $1,800 for each child on their tax return this year.

Also, check out five key documents you’ll need to earn up to $22,503 from the IRS.

Plus, here’s the fastest way to get your tax refund this year.

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