Skip to main content

What Happens When $250+ Monthly Child Tax Credits End on Dec. 15?

If you have kids under 18, odds are that you’ve been getting an extra $250 to $300 per child each month, courtesy of the advance child tax credits that began in July. But that much-welcomed extra cash is about to end.

The payments scheduled for Wednesday, Dec. 15, will be the final round for the monthly child credits.

Why Are the Child Tax Credits Ending?

In March 2021, President Joe Biden signed the $1.9 trillion American Rescue Plan into law. Along with $1,400 stimulus checks for most Americans, the bill provided a temporary child tax credit boost. “Temporary” is the key word here.

The bill raised the value of the child tax credit from the typical $2,000 maximum per child. For 2021 only, the credit increased to $3,000 for children ages I6 to 17, or $3,600 for each child under age 6. Half of the credits were available as monthly installments.

Since July, parents who qualify have received up to $250 a month for each child between 6 and 17, and up to $300 a month for each child younger than 6. The remaining half of the credit — $1,500 to $1,800, depending on the child’s age — will be disbursed next year when parents file their taxes for 2021.

Could Congress Extend the Expanded Credits?

It’s possible, but don’t count on it. The Build Back Better Act that Biden wants to pass before Christmas includes a one-year extension of the expanded credit and additional measures to address soaring child care costs. But as of Dec. 13, the bill remains at an impasse in the U.S. Senate.

Unless Congress takes action before year’s end, the payments will end on Dec. 15. If the extension expires, child tax credits will revert to the normal amount. A married couple with a combined income of $400,000 or less can receive up to $2,000 per child. However, the payments won’t be available in advance monthly installments. That means you’d have to wait until tax time to receive the credit.

How Do I Get the Other Half of the Credit?

The only way to get the remaining half of the credit is to file your 2021 tax return. Typically, you can file your taxes starting in mid- to late January. The deadline to file taxes for 2021 is April 15, 2022, unless you file for a six-month extension. If you or your partner gave birth to or adopted a child in 2021, you can receive the full credit of up to $3,600 when you file.

Even if you’re not typically required to file taxes, it’s essential that you file a return early next year. Doing so could have additional benefits. For example, you could qualify for a $1,400 stimulus payment for yourself and your dependents if you didn’t receive it in the spring. Many low- and middle-income families are also eligible for the Earned Income Credit. A family with three or more qualifying children could receive up to $6,728 for 2021.

The quickest way to receive your additional child tax credit money is to file a return online. There are plenty of free tax filing software programs that simplify the process. But it’s vital that you file online instead of by mail. Submitting a paper return could add weeks, if not months, to your wait time.


This post on TessMore Finance is also published on The Penny Hoarder.

The Penny Hoarder https://ift.tt/3IZmrQK

Comments

Popular posts from this blog

How to Ask Your Manager for Feedback (& easily impress them)

Your manager is either your greatest friend, or your biggest obstacle. No matter where your manager stands on this spectrum, getting feedback from them is going to be a valuable resource for your professional growth so this is something you should be doing consistently at work if you want to get more promotions and raises. […] Source from I Will Teach You To Be Rich https://ift.tt/XNUxhGu

Cost Income Ratio: Definition, Formula, Calculation, and Interpretation

Financial managers perform a wide range of calculations and activities to analyze a company’s yearly and quarterly performance. Cost to income ratio is one of the efficiency ratios used in financial management.  The cost to Income ratio is used to evaluate a company’s performance. Its fundamental role is to validate the profitability of the company. Financial managers use this efficiency formula to compare operating expenses or costs with the income generated.  The cost-income ratio portrays the effectiveness at which the company is being run. There is a roundabout connection between the expense ratio and the organization’s benefit. It is considered that the lower the cost to income ratio, the better is the performance of the company.  In this article, we’ve highlighted everything about the cost-income ratio to help you understand this financial management ratio quickly and easily. How is a cost to income ratio defined?  The cost-income ratio is defined as a rat...

Best Crypto Sign-Up Bonuses and Promotions

Many cryptocurrency exchanges offer sign-up bonuses to draw potential customers. You can receive free Bitcoin or funds you can use to purchase your preferred altcoin, depending on the offer. The terms and conditions vary, from the bonus amounts to the qualifying criteria. Most exchanges will pay you a few dollars for completing your first trade. However, the more valuable promotions may allow you to receive up to $500 or more, in line with many stock brokerage bonuses . Here is a list of the sign-up bonuses covered in this article: Binance.US : $10  Coinbase: $5 Crypto.com : $50 eToro: $10 Gemini: $10 KuCoin: Up to $500 Phemex: Up to $6,500 Plynk: Up to $100 SoFi : Up to $100 Tastytrade : Up to $2,000 TradeStation : $150 Table of Contents Best Crypto Sign-Up Bonus Offers Binance.US Coinbase Crypto.com eToro Gemini   KuCoin Phemex Plynk SoFi Tastytrade TradeStation FAQs What Is the Best Crypto Sign-Up Bonus? Best Crypto Sign-Up Bon...