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Tuesday, May 24, 2022

The Final Federal Stimulus Check: Should We Expect Any Changes In The 2022 Child Tax Credit Payments?

The American Rescue Plan could not be extended by President Biden into 2022. This made the child tax accredit revert to the way it was before it was enhanced in 2021. In effect, the CTC will only be worth $2,000, its regular rate before it was enhanced. The CTC stimulus check was expanded in 2021 to almost double in the range of $3,000-$3,600.

Citizens even received 50% of it in staggered payments through monthly stimulus checks between July and December 2021. This year the $2,000 will go to children 17 and younger with household incomes not exceeding $112,5000 for single individuals and $150,000 for couples filing jointly.

Is There Any Chance Of The CTC Stimulus Check Changing In 2022

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Multiple studies conducted to study the effect of the enhanced CTC stimulus check had the same results. Around 40% of families who benefitted from the expanded payments could come out of poverty. The Build Back Better Bill had to be passed if the CTC stimulus check had to be extended into 2022.

Even though it was blocked by the Republicans, Democrats are working behind the scenes to bring up the issue again in Congress and come to a solution. The change in the credit has bipartisan support.

The federal CTC was enacted 25 years ago in 1997 and was within the Taxpayer Relief Act. There have been multiple revisions down the years, with the more radical tax provision revamp being the credit children and their families could claim in 2021.

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But with strong opposition from the Republicans to the Build Back Better agenda of President Biden, this powerful measure to combat poverty was allowed to be brushed under the carpet. The refusal of even Democratic senators Joe Manchin and Kyrsten Sinema took away the slender majority that the Democrats enjoyed in the Senate.

The CTC stimulus check will continue in its condensed form of $2,000 and there could even be a restriction on who could get the check.

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