The child tax credit expansion officially ended Dec. 31, 2021 after lifting millions out of poverty. What happens now?
Payments worth $300 per month went to eligible families.
The payments were the first half of the child tax credit.
Children under 6 were eligible for a $3,600 credit. Children ages 6-17 were eligible for $3,000.
The original credit was worth $2,000 and changed under the American Rescue Act.
Dec. 15, 2021 marked the final payment.
The maximum amount families received was $1,800 altogether. They can claim the second half of the $3,600 when filing taxes in 2021.
In order to qualify for the full amount, single parents needed to have an AGI of $75,000 or less, with married couples having $150,000 or less and head of household filers making $112,500 or less.
Possible outcomes for child tax credit in 2022
Credits go back to normal
The credits will be worth $2,000 again and there will be no monthly payments without the Build Back Better bill.
President Joe Biden originally wanted to extend the expansion including higher credits and advanced payments to 2025.
The bill passing will now only extend it for one year.
The Build Back Better bill did not pass before 2022. This means there will not be a payment in January.
There will be no extension if the bill doesn’t pass.
Credits are extended throughout 2022
There is the possibility that it is passed.
If that’s the case, the $3,600 and $3,000 credit will continue for 2022 with the advanced payments.
Everyone in the Democratic party needs to vote for the bill.
One senator said he could not vote for the bill and there needs to be a working requirement for those getting the credit.
Families will see two payments for February if the bill gets passed. This would make up for the Jan. payment that cannot happen.