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Sunday, May 29, 2022

Stimulus Check: Proposal To Extend Child Tax Credit

The latest Stimulus checks related news states that a proposal has been pushed to extend the child tax credit until 2025

The child tax credit, from the American Rescue Plan, signed into effect by President Joe Biden in March 2021, was initiated on July 15.

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Currently, caregivers with eligible children should be receiving their third-round stimulus checks. A few Democrats have proposed to extend the child tax credit until 2025. 

A few Democrats state that the child tax credit has been extremely successful. The credit will end in 2022. Due to the success, they are fighting for the child tax credit extension for a few more years.

Stimulus Check: About The Child Tax Credit

The child tax credit is worth a maximum of $3,000 for children between 6 -17, and $3,600 for children under 6 depending on the co-dependents. Presently, parents with eligible co-dependents will receive either $250 or $300 in monthly payments. This will continue until December 2021. Finally, in 2022, parents can claim the rest of the child tax credit when they file their 2021 taxes.

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The credit will include children who turn age 17 in 2021.

For the fiscal year 2021, families claiming the CTC will receive a maximum of $3,000 per eligible child between the ages of 6 and 17 at the end of 2021. Parents will receive $3,600 stimulus check per eligible child under age 6 at the end of 2021. Under the previous law, the amount of the CTC was a maximum of $2,000 per eligible child below the age of 17 at the end of the tax year 2021.

The escalated amounts are lowered, for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.

According to research done by Columbia University’s Center on Poverty & Social Policy, the first payments helped reduce child poverty by 25%. Thus, some Democrats have voiced their desire to extend the child tax credit. While the rest want to make the credit permanent, according to MoneyWise. Treasury Secretary Janet Yellen, House Speaker Nancy Pelosi, and President Biden have announced that they want to make the benefit permanent.

The risk of Child Tax Credit harming families is high. It may permanently harm families, risk the loss of billions of taxpayer dollars in waste and fraud, and cost American jobs.


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