WASHINGTON – Families eligible for the expanded child tax credit under the Biden administration’s US bailout will receive the last payment on December 15, although more could follow in the future – pending decisions by Congress .
The expanded child tax credit payments could potentially be extended until 2022, but those payments are tied to President Joe Biden’s social and environmental spending bill that has stalled in the Senate.
One of the reasons for the delay in passing the spending program is that the Senate is also divided and Republicans unanimously oppose the legislation. One of the Democratic Party’s latest holdouts, Senator Joe Manchin, has been pushing for months for Democrats to downsize the bill and drop some initiatives, including one demanding paid family leave and medical leave.
Manchin said he was still not ready to back his party’s $ 2 trillion social and environmental legislation, then spoke to Biden on Monday as party leaders scrambled to find a way move the long-standing package forward – preferably by Christmas.
The West Virginia lawmaker declined to describe his phone conversation with the president, saying he and Biden “were talking about different iterations” and answered “anything is possible” when asked if they could come to an agreement on it. ‘here the holidays.
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White House spokesman Andrew Bates said the two had “a good, constructive phone call” and would talk to each other again soon.
In previous comments to reporters, Manchin did not specifically threaten to vote against the legislation or say he opposed Senate Majority Leader Chuck Schumer, DN.Y.’s goal of approving a compromise by Christmas. But his position underscored that White House and Senate leaders have yet to make concessions to gain Manchin’s support.
FILE – Senator Joe Manchin, a Democrat from West Virginia, speaks to members of the media outside his office on Capitol Hill in Washington, DC CREDIT: Sarah Silbiger / Bloomberg via Getty Images
One of the reasons the Democrats are urgent is that unless the measure is approved by December 28, the IRS will not have time to prepare the checks owed on January 15 to millions of people. families who receive the child tax credit, Senate Finance Committee Chairman Ron Wyden, D-Ore., said.
“The improved tax credit has enabled parents across the country to pay for food, clothing, shelter and other essentials and is expected to reduce the number of children living in poverty by over 40 % relative to child poverty levels in the absence of the expansion, ”according to the Center on Budget and Policy Priorities.
If payments cease due to the deadlock in Senate talks, it is estimated that “9.9 million children are at risk of falling below the poverty line or falling deeper into poverty,” added CBPP.
Meanwhile, about $ 15 billion was sent to 36 million families in November, the Treasury Department and IRS said in a joint statement. The money is expected to reach some 60 million children.
The monthly installment, valued at up to $ 300 per child, was issued by direct deposit for most families as of November 15, as part of a program authorized under the stimulus bill that Democrats passed without a Republican vote in March.
Low- and middle-income parents receive $ 3,000 for each child aged 6 to 17 and $ 3,600 for each child under age 6 under the expanded child tax credit. Payments are based on income and are starting to disappear for people earning over $ 75,000 and married couples earning over $ 150,000. The tax credit is reduced by $ 50 for every $ 1,000 a family earns above the income thresholds.
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If families earn too much to qualify for the softened tax credits, they can still receive the $ 2,000 credit for their children if their income level is less than $ 200,000 for individuals and $ 400,000 for couples. married.
There is no limit to the number of children who can receive the credit per family.
A free calculator from Omni allows individuals to see how much money they can expect to receive.
The IRS distributed half of the 2021 tax advance credit in six monthly installments, valued at $ 250 to $ 300 per child. The rest will come when parents file their 2021 tax returns next April.
Families who preferred to receive a lump sum payment when filing their tax return in 2022 could use a tool unveiled by the IRS in June.
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Parents who have provided the IRS with their bank details in order to receive a tax refund receive the payment by direct deposit. Otherwise, parents receive the money in the form of a paper check.
The IRS began paying off the credit on July 15. From there, the agency made the monthly payments on the 15th of each month until December 2021.
The Associated Press and FOX Business contributed to this report.