While new stimulus checks are unlikely, some American families will continue to benefit from the Child Tax Credit this year. The Child Tax Credit, which President Joe Biden signed into law as part of the $1.9 trillion American Rescue Plan relief enacted in response to the coronavirus (COVID-19) pandemic, finds qualified families up to $3,600 per child.
Biden proposes Child Tax Credit Extension
President Joe Biden’s State of the Union address highlighted the benefits of a pending social spending package that could provide more money to Americans. Biden may suggest extending the expanded child tax credit, which provided eligible families with monthly payments of up to $300 per child last year.
The checks were canceled because the payments were only permitted for 2021. Democrats have refused to implement the Build Back Better package with a simple majority, which would increase the maximum credit to $3,600 for children under the age of six and $3,000 for children ages six to seventeen, CNBC posted.
Biggest Child Tax Credit in history
The Child Tax Credit in the American Rescue Plan provides the biggest child tax credit in history and historical relief to the most significant number of working families ever, according to The Wthite House.
The first half was distributed to eligible families in the form of monthly payments of up to $300 per child under the age of six and up to $250 per child between the ages of six and seventeen between July and December 2021. The remaining half will be claimed on residents’ tax returns in 2021.
Families who choose not to make monthly payments will be able to receive the credit in one single amount when they file their 2021 tax return. The credit is being allocated in two stages, silive.com reported.