Home Finance Child Tax Credit Of $3,600 Is About to Drop To $2,000

Child Tax Credit Of $3,600 Is About to Drop To $2,000

President Biden passed the $1.9 trillion American Rescue Plan Act shortly after taking office in 2021. This financial package increased the amount of the child tax credit from $2,000 to $3,000 per child aged 6 to 17 and increased the $2,000 child tax credit to $3,600 for children aged five and under for the 2021 tax year.

Rather than wait for the 2022 tax season, Congress ordered the IRS to provide qualifying families with up to half of the money allocated. This would be provided in the form of $250 or $300 monthly tax advances during July and December last year.

The last payouts went sent out to 36 million households in December. So all those payments are no longer needed to be sent.

Family members can claim the remaining part of their 2021 child tax credit this tax season.

Child Tax Credit Funding To Be Extended, Says Biden

President Biden’s team wrote on the White House website: The American Rescue Plan’s proposed child tax credit is only in effect until 2021. For this reason, President Biden believes that the expected tax credit should be extended for the next few years.

For the 2022 tax year, the most updated version of the Build Back Better proposal would extend the enlarged child tax credits ($3,000 and $3,600). Sen. Joe Manchin (D-W.Va.) has stated unequivocally that he opposes the measure. However, he also added that he is in support of the enhanced child tax credit.

Without a single Republican vote in the United States Senate, Democratic leadership might pass the Build Back Better measure through reconciliation. However, that would necessitate the support of all 50 Democrats in the Senate, including Manchin. As a result of Manchin’s opposition to the package, lawmakers on Capitol Hill believe the child tax credit will be reduced to $2,000 in the 2022 tax year.

Previous articleEthereum Struggles To Clear Gains, A Break in Bullish Trend Noticed
Next articleClaim Amount Of $3,600 As Stimulus Credit In 2022
The youngest in team, he is responsible for reporting all the rumors and leaks related to gadgets and software. Other than spreading rumors, Bill also likes to write about social networking and cyber security.