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Child tax credit 2022 update – Families to get New Year $1,800 payment as December $300 becomes last monthly cash

MILLIONS of families will receive a payment of $1,800 or $3,600 in the new year, after the December $300 tax credits were the last monthly payments.

Eligible families who did not receive any advance child tax credit payments can claim the full amount of the child tax credit on their 2021 federal tax return, filed in 2022.

The deadline for Congress to extend the $300 child tax credit payments into 2022 is coming up, and there has been no indication that the deal will be reached by then.

Parents may be able to receive two payments in February 2022, but only if the new bill is passed to extend the stimulus relief program.

Democrats have pushed for Congress to renew child tax credit payments in 2022, but West Virginia Senator Joe Manchin has opposed it.

Since the Senate has adjourned for the rest of this year and has not yet passed the bill, the IRS will not have enough time to process payments for January 15.

Read our Child Tax Credit live blog below for the latest news and updates…

  • Cash for vaccinated workers

    Workers in some states are set to see thousands of dollars in bonuses for getting vaccinated against the coronavirus.

    The City of Phoenix has approved incentives of up to $2,000 for qualified employees.

    According to city records, qualified full-time employees will receive $500 for getting vaccinated.

    And if they get fully vaccinated by January 18, 2022, the employees will get an extra $1,500. Part-time vaccinated workers in Phoenix will get up to $1,000.

  • SNAP increased benefits in October

    The Supplemental Nutrition Assistance Program (SNAP) increased its benefit by 25 percent on average starting in October.

    It provides food-purchasing assistance for low- and no-income people.

    Each state has a different application form, which can be found online.

    Before the pandemic, the SNAP payment was around $121 per person.

    From October the average increase was $36.24 per person per month.

    It is the largest SNAP has increased since it was established in 1975.

  • When was the CTC established?

    The child tax credit was established in 1997.

    It has been around for more than two decades and a proposal in the American Rescue Plan, which was signed into law in March, increased the amount in payments.

    “Previously, families received a credit worth up to $167 per month per child ages 16 and under,” Vox reported.

  • What sacrifices have families made to afford child care?

    According to Care.com, 94percent of parents have had to make at least one major sacrifice in the last year:

    • 42% of parents reduced their hours at work
    • 26% of parents changed jobs
    • 26% of parents left the workforce entirely
  • Do parents feel that the current CTC is enough?

    According to the Cost of Care Survey, 25percent of parents said that the current plan provides enough support.

    56percent said the plan should go further in helping provide child care support for families.

    79percent of respondents said they support the increase in child tax credit payments.

  • What child care rate is considered affordable?

    A child care rate of no more than 7percent of a family’s household income is considered affordable, according to the U.S. Department of Health and Human Services (HHS).

    Currently, most families have reported that they spend no less than 10percent of their household income on child care expenses.

  • The cost of child care

    According to the 2021 Cost of Care Survey, most families are struggling to afford child care.

    85percent of families surveyed said they spend at least 10percent of their household income on child care costs.

    More than half (57percent) of families surveyed spent more than $10,000 on child care in 2020.

    59percent of families are on track to spend more than $10,000 on child care in 2021.

  • Family and Medical Leave Act, continued

    And most importantly, although qualified Americans are guaranteed time off – it’s unpaid. This is problematic because the majority of Americans live paycheck-to-paycheck.  

    Compare this to other countries like Estonia, which offers new mothers up to 18 full months of paid leave.

    There’s a chance your employer might offer paid leave – but it’s not common. In fact, only 19 percent of US workers have access to paid family leave through their employers. 

  • Family and Medical Leave Act explained

    Under the Family and Medical Leave Act (FMLA) of 1993, eligible employees can take up to 12 weeks off of job-protected leave each year.

    But there are a couple of limitations to the act. 

    Not every employee qualifies for the FMLA. According to the Department of Labor, just 56% of employees are eligible for the FMLA.

  • Setback for additional payments, part two

    Manchin expressed concerns over the spending amount and effects on inflation.

    In a news release about his “no” vote, Sen. Manchin said: “The non-partisan Congressional Budget Office determined the cost is upwards of $4.5trillion which is more than double what the bill’s ardent supporters have claimed.

    “They continue to camouflage the real cost of the intent behind this bill.”  

  • Setback in push for additional payments

    Hopes of extending child tax credits into 2022 have stalled after a Democratic senator said he won’t vote for the plan.

    The Biden administration originally proposed extending the payments through 2025 before the proposal was reduced to only one additional year.

    CTCs are part of the nearly $2trillion Build Back Better Act, which includes a slew of social spending programs and climate practices for the US.

    The spending package failed to get the key vote of Democrat Sen. Joe Manchin.

  • Expanded CTC would give ‘breathing room’

    Those who support the Build Back Better Agenda say it will give millions of Americans breathing room, and help them take care of their families by extending the Child Tax Credit.

    Second Gentleman Doug Emhoff, husband to Vice President Kamala Harris, tweeted “Millions of Americans—especially women—are unable to join the workforce because they are staying home to take care of their families.”

    “The Build Back Better Agenda gives them breathing room by cutting child care and elder care costs and extending the expanded Child Tax Credit,” Emhoff added.

  • Payments before the expansion

    Before the America Rescue Plan, the Covid-19 relief package that launched in March, families received up to $2,000 for each qualifying dependent, per month.

    Now, the payments are $3,600 for each dependent, and if the Build Back Better Agenda is passed, the expansion will last through 2022.

  • What is the American Rescue Plan?

    On March 11, 2021, Biden signed the American Rescue Plan into law.

    The $1.9trillion economic stimulus bill is meant to provide relief to the country in response to the COVID-19 pandemic.

    According to the bill, “The American Rescue Plan will change the course of the pandemic and deliver immediate relief for American workers.

    “The plan will build a bridge to an equitable economic recovery and immediately
    reduce child poverty,” it states.

    Biden’s emergency legislative package aims to fund vaccinations, provide immediate and direct relief to families suffering from the pandemic, and support struggling communities.

  • Will Build Back Better create jobs?

    The White House claims its plan will invest in workforce development, which will train millions of Americans for high quality jobs, in sectors such as health care and construction.

    Joe Biden is pledging to create clean energy jobs that are unionized and beneficial to the climate.

    The plan also addresses the teacher shortage and claims it will expand free meals to an additional 9.3million students, and upgrade school infrastructure.

  • Build Back Better: who benefits?

    Families with children and workers without children are the two groups the White House Websites addresses as tax cut beneficiaries of the plan.

    The White House says the Build Back Better Agenda would extend the recent Child Tax Credit expansion. It also claims this tax cut would nearly cut rates of child poverty in half.

    The agenda will also extend the Earned-Income Tax Credit, which the White House claims will benefit around 17 million low-wage workers.

  • Lowered costs under Build Back Better

    According to the White House’s website, the Build Back Better Agenda aims to lower a variety of costs. They include:

    • Childcare costs
    • Healthcare costs
    • Higher education costs
    • Housing costs
    • Prescription drug costs
  • Build Back Better Agenda explained

    President Joe Biden is pushing to get his Build Back Better Agenda passed. The plan promises to create jobs, cut taxes, and lower living costs for working families.

    The plan would address hardships which were temporarily aided by stimulus payments.

    If the proposal is passed, it will also extend child tax credit payments for an additional year.

  • Increasing CTC coverage could reduce hardship

    Finally, the NBER found, “increasing the CTC coverage rate would be required in order for material hardship to be reduced further.”

    “Self-reports suggest the lowest-income households were less likely than higher-income families to receive the first CTC payments,” the paper added.

    “As more children receive the benefit in future months, material hardship may decline further.”

    “Even with imperfect coverage, however, our findings suggest that the first CTC payments were largely effective at reducing food insufficiency among low-income families with children.”

https://www.the-sun.com/money/4328299/child-tax-credit-2022-irs-last/ Child tax credit 2022 update – Families to get New Year $1,800 payment as December $300 becomes last monthly cash

DevanCole

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