Millions of families had a lot of help from the child tax credits this year. Many children were able to be lifted out of poverty thanks to the expansion and advanced credits.
The credits were expanded to a maximum of $3,600 per child under the American Rescue Act. Before that they were $2,000.
The advanced payments started in July and will end in Dec. The most a parent will get is $300 per child.
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In total, 3 million children were taken out of poverty because of the payments.
To get the full payments, couples must make less than $150,000 and single parents who file as head of household must make less than $112,500.
Whether or not the expansion and advances will extend into 2022 is still up in the air.
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One senator states they wanted an income cap and working requirement for parents to benefit from the money.
What parents can still do in 2022 is claim the second half of the credits on their 2021 tax return.
Many are hoping that the child tax credit payments could extend until 2025.
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What’s being discussed right now for child tax credits?
There is some opposition happening in Washington from Democrats, so right now it looks like the credits may be extended for one more year, hopefully.
A version of President Joe Biden’s Build Back Better bill was passed by the House of Representatives that would extend the $3,600 per child maximum one more year.
Included for families with children in the bill is paid family leave, lower child care, and lower higher education costs.
The Senate now needs to look at the bill before they pass it. More changes could come from that.
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