Monthly Child Tax Credit To Be  Permanent? – Here’s What You Need To Know!

In 2021 the expanded child tax credit had already expired, but it had a significant positive impact on families with children during the peak of the pandemic.

Monthly Child Tax Credit To Be  Permanent? – Here’s What You Need To Know! (PHOTO: Forbes)

 The Monthly Child Tax Credit

Since the expanded child tax credit had already expired several lawmakers have made efforts to revive this credit but with little success. The expanded monthly child tax credit was reintroduced again by a group of U.S. Representatives to make it permanent.

Haft of the credit amount was given during 2021 via six monthly installments, while the other half was available during the 2021 tax filing and 2022 tax return filing season.

Moreover, the American Rescue Plan Act had expanded the credit from $2,000 to $3,600 for children ages five and below, and $3,000 for children ages six through 17. Also, the child tax credit was made completely refundable to eligible taxpayers.

In 2022, the child tax credit return to the pre-pandemic level, and this credit is smaller and excludes children who are 17 years old.

Thus, U.S. Representatives Rosa DeLauro (D-CT), Suzan DelBene (D-WA), and Ritchie Torres (D-NY) want the expanded credit to be restored, as well as make it permanent. For this, they reintroduced the American Family Act.

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Here’s How

The American Family Act was backed by 204 House Democrats so that it would restore the $300 expanded monthly child tax credit for children aged six and below and $250 per month for children ages six to 17 years old.

Further, the bill would also supply the expanded monthly child tax credit to “left-behind” children by eliminating the rule that limits the refundable portion to $1,400 annually. Also, the new monthly child tax credit bill also makes the earnings requirement gone which previously prevented about one-third of eligible children from the full credit.

Institute on Taxation and Economic Policy (ITEP) and the Food Research & Action Center (FRAC) are some of the two organizations that have come to support the expanded monthly child tax credit and there are still more that also support the move.

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