Families have already received half of their advance Child Tax Credit payments from the IRS.
Foto:
Jemal Countess / Getty Images
Without the passage of the Build Back Better Act, the improved Child Tax Credit (CTC) is back to what it was before 2021: up to $ 2,000 for each eligible child under the age of 17, in the form of an annual tax credit.
This year the monthly advance payments ended and 17-year-olds are no longer entitled to credit. Parents or guardians will now have to file a tax return to receive the credit next tax season.
The credits will also have a lower value, up to $ 2,000 dollars, compared to the $ 3,000 or $ 3,600 dollars that were granted during 2021 and has another change since it is not fully refundable.
It is estimated that regarding 36 million families have lost monthly payments, the last were shipped on December 15. And millions are no longer entitled to credit at all.
Enhanced credit as part of the American Rescue Plan signed by President Joe Biden in March 2021.
The one-year extension of the tax credit failed due to opposition to the plan Build Back Better of Senator Joe Manchin. Now Democrats need the votes of all 50 Senators in the House to pass the legislation.
Studies have shown that following the monthly CTC payments begin to be distributed, child poverty and hunger decreased significantly across the country.
The U.S. Census Bureau conducted a survey before and following it sent the first deposit of the tax credit and found that in a span of just six weeks, economic support showed that credit allowed a rapid drop in food shortages and a decrease in those families who said they had difficulty paying weekly expenses.
Without the payments, experts fear that the trend might be reversed, especially since the families who need the most money, those with the lowest incomes, will lose their eligibility for the credit because they do not meet the minimum earned income, $ 2,500.
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