Photo: Scott Eisen / Getty Images
For: Luis Diaz
Tuesday, October 8
The last payment of the Child Tax Credit is delivered today: what's next
36 millions of families received the last payment corresponding to the Tax Credit for Children, today, who throughout six months received this tax credit from the Internal Revenue Service (IRS) has been able to help them with the economic precariousness left by the pandemic of Covid – 19.
This federal government program has been effective in combating existing poverty, but its continuity depends on a child, because Congress has not guaranteed the resources to continue in 2022 despite the fact that its expansion has already been committed.
The budget may be slowed down to unless Congress approves the Build Back Better social and climate spending package from President Joe Biden. The economic package is stagnant in the Senate. The deadline they have in the Upper House to provide resources to the IRS is 28 from December.
The Build Back Better version passed by the House would extend the advance payments until next year, but the bill has not been approved by the Senate . It is speculated that the debate on the economic package could last until 2022.
“It is possible that, if Congress finally passes the bill with the current prepayment provision still in it, the payment of the 15 January could be delayed once the IRS has the authority of Congress to issue the payment, “said Mark Luscombe , Principal Analyst at Wolters Kluwer Tax and Accounting, to Yahoo.
It is clear that many parents or guardians who are recipients of the Tax Credit for Children have part of these resources committed for various purposes, but in the face of the unknown that the Senate has not made the necessary efforts to guarantee that the monthly payments will continue, it is necessary that they do not waste the money they have obtained .
The key to getting ahead, according to finance experts personal is planning expenses, as well as taking into account that in the monthly family budget there will no longer be, at least, $ 250 or $ 300 extra dollars, or more in some cases, which were destined to various
For this reason, regardless of the possible approval of the budget for the tax credit to continue, families should think that they will not have this money and focus on diversifying their spending wisely.
Also, with the arrival of next year, it is recommended that taxpayers begin to prepare their tax return, since in the event that the Child Tax Credit is resumed or continued, this document will be necessary for the IRS to grant you benefits.
Families must submit the income tax return of 2021 next year to claim the second half of the child tax credit they are eligible to receive.
If you received money for the child tax credit this year, watch out for big paperwork next month. In January, taxpayers will receive a letter from the IRS, the “Letter 6419,” which will detail how much money they received for advance payments from the IRS. child tax credit in 2021.
Those who did not receive money corresponding to the advance payment of the Child Tax Credit must request a claim in tax season, but the declaration will necessarily be required.
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