The Build Back Better Act, which would have extended the monthly CTC payments for another year, failed to pass Congress in December 2021. However, even if the monthly payments are no longer available, eligible families can still claim the full Child Tax Credit on their income taxes in 2022.
Families have to option
According to Forbes Advisor, families can receive all or part of the credit for their 2021 taxes, depending on how much they choose to receive in monthly installments. For example, the Build Back Better Act is currently stuck in the Senate. While President Joe Biden wants the advanced payments to be permanent, Senator Joe Manchin (D-WV) voted against keeping the advanced CTC payments without a job requirement and it is killing the bill.
Unfortunately, this means that no more Senate talks direct monthly payments to families are unlikely to continue. However, the Build Back Better Act may be divided into separate pieces of legislation, though it’s unclear whether that would involve keeping the monthly CTC payments in place.
CTC cancellation is harsh, short-sighted
A quarter of parents took advantage of the credit to pay for child care so they could go back to work. A third of the funds were used to cover necessary school expenses. At least 90% of families used the credits to purchase needs for their families. Perhaps most importantly, new research has discovered that providing cash to low-income families improves newborn brain development and learning later in life.
Failure to renew the enlarged Child Tax Credit is not only cruel and shortsighted, but it is also financially unwise. Workers and families must withstand inflation and other pandemic-related hardships for the economy to recover properly. The expanded Child Tax Credit was undoubtedly our most effective weapon in this regard, the Common Dreams reported.
Read More About:
“Significant Initiatives” to Expedite Tax Refunds This Year, Says IRS