President Biden’s $1.9 billion coronavirus assistance package was distributed to qualified families in 2021. Those families, however, only got half of their 2021 credit after six months of advance payments with monthly checks of $300 for children under the age of five and $250 for children aged six to seventeen.
Families Can Claim the Credit’s Remaining Value
Families will be eligible to claim the remaining credit balance when they file their taxes this spring. If you were qualified for the benefit but missed the deadline, you can file a tax return claiming the credit, and the tax refund will include the total amount for the number of dependents claimed.
If a family has two children, one aged five and the other aged nine, the family will get $6,600 if they have not received any prior payments and $3,300 if they have received payments between July and December, en.as.com wrote.
American Rescue Plan
The American Rescue Plan was passed in March 2020, boosting the existing child tax credit to $3,000 from $2,000 and adding $600 for children under the age of six for the 2021 tax year. The first half of the credit was distributed to families in monthly checks beginning in July and ending in December. The second half will start when Americans file their 2021 tax returns this year, Marca posted.
President Biden and many in his party called for a five-year extension of the child tax credit shortly after the measure was approved. They inserted a one-year extension in the version of the Build Back Better measure enacted by the House in November after discussions between the caucus.
Biden Is Not Sure If He Could Still Include the Program
According to thehill.com, on the eve of his first anniversary as president, Biden lauded his administration’s accomplishments, including a nearly 40% reduction in child poverty rates. His expansion of the child tax credit program, which increased benefit levels, broadened eligibility for low-income families and paid payments out in monthly installments, was a significant factor in the fall.
The program began distributing payments in July and will end in December 2021 with the final price to families. Biden had wanted to include a five-year extension of the child tax credit in his Build Back Better legislation, but he revealed that this might not be achievable.
Although it was an issue that Biden was passionate about, he said he was “not sure” if he could include the program in his package. So he’s run on many significant issues that he cares about, and I’m going to keep coming back to them, Biden added.
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