- Child Tax Credit payments could be larger next year.
- The Senate Budget Committee has presented a proposal to increase the size of the payments permanently.
- One of the objectives would be to expand the number of people who benefit from this credit.
The Child Tax Credit payments could be larger next year, as the Senate Budget Committee has presented a proposal to increase the size of the payments permanently.
The Senate Budget Committee proposed to permanently increase the Child Tax Credit to $ 3,600 for children under 6 years of age and $ 3,000 for children between 6 and 17 years of age, as is included in the American Rescue Plan although it was only for this year.
Child Tax Credit Checks Could Be Higher Next Year
With this action, the Senate Budget Committee seeks to change two points of the current Child Tax Credit: First, that the amounts increased, which are originally up to $ 2,000 for each child under the age of 17, of which $ 1,400 is refundable, last beyond this year.
And secondly, expand the number of people benefiting of this credit. For that, they would change the requirements that determine a person’s eligibility to receive aid and would eliminate the tax liability that those checks mean.
The proposal is on the table
What would the families gain? According to the Senate Budget Committee’s proposal, the Child Tax Credit would permanently increase to $ 3,600 for children under 6 years of age and $ 3,000 for children between 6 and 17 years of age.
But that would not be all, because they would also grant them $ 500 for each 18-year-old or dependent between 19 and 24 years old that they have indicated on their tax return. NY Journal.
Millions of families benefited from Credit payments
So far, the Internal Revenue Service (IRS) has delivered Child Tax Credit payments to more than 30 million families who qualify under the premise of having reported income of less than $ 75,000 per year for individuals or less than $ 150,000. dollars for joint declarations of couples.
If they have higher incomes, they may also qualify only that they would not receive the maximum monthly amount of up to $ 300. The IRS has already issued the first two checks, one on July 15 and one on August 13.
How much money will I receive?
The second round of payments reached the bank accounts of approximately 39 million families this Friday August 13. This time, beneficiaries will receive $ 300 or $ 250, but some may receive more and others less.
The money will reach parents in six monthly installments, spread out from July to December, $ 300 dollars for children under six years of age or $ 250 dollars for children between the ages of six and 17. Additionally, beneficiaries will have to claim the remaining amount when they file their tax return for next year.
Receive less than $ 250
Only families that meet the income threshold will be able to receive the full $ 300 or $ 250 each month. According to the IRS, “the new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of $ 75,000 or less for singles, $ 112,500 or less for heads of household and $ 150,000 or less for married couples that file a joint return and for qualified widows and widowers ”.
But what if a person earns more than that? You will still get the help, only you will receive less quantity. “Above these income thresholds, the additional amount above the original credit of $ 2,000, whether it is $ 1,000 or $ 1,600 per child, is reduced by $ 50 for each additional $ 1,000 in modified AGI,” explained the IRS.
Receive more than $ 300 dollars
Who could get more than $ 300 this month? The IRS says not everyone received the first Child Tax Credit check they issued on July 15 due to an agency programming error and acknowledged that some taxpayers with individual taxpayer identification numbers (ITINs) were still waiting. of that first payment.
So the pending money could arrive in August. “We have worked quickly to correct this problem and these taxpayers will start receiving payments in August. All affected taxpayers will receive their July payment, ”the agency commented.
A programming error
What happened? IRS spokesman Michael Devine noted that “some kind of scheduling problem” had occurred precisely with people who filed their taxes with ITIN numbers. “As soon as we identified it, we started working on it. We believe that we have solved it so that it does not happen again ”, clarified Devine.
Although they did not state how many were affected by the bug, the IRS said they would receive their full July payment. “Anyone who did not receive the payment in July will receive the full amount they could receive, but will receive it in five payments instead of six, starting with the August payment,” explained the IRS spokesperson.
How to confirm if I am eligible?
The IRS announced that they have a “Child Tax Credit Eligibility Assistant”In SPANISH, which will help families determine whether or not they are eligible for Child Tax Credit payments and an“ Update Portal ”, which will allow families to monitor and manage their Child Tax Credit payments.
“Before filing a return or using the Non-Filer Sign-up tool, families unsure if they qualify for the credit or prepayments may want to use another new tool: the Child Tax Credit Eligibility Assistant. ”Advises the agency. By just answering a few questions, you can do a preliminary check to see if they qualify for payments. This is not an enrollment tool. Child Tax Credit Checks Could Be Higher Next Year.