Photo: John Moore / Getty Images
For: Luis Diaz Updated 19 Jan 2022, 15: 38 pm EST
One of the questions that many Americans are asking has to do with the future of the Child Tax Credit, a program that was improved in the context of the ongoing Covid pandemic, but that for its monthly continuity required a budget backed by the ambitious Build Back Better program, which has not been approved
.
Under this situation, the tax credit corresponding to 2022, which you will get when you file your return at 1215003549, will be of $2, dollars per each minor dependent, with a limit of 17 years. The benefit will be lower because Congress did not approve an extension of the improved benefit , nor an extension of the monthly payments.
So far, the Internal Revenue Service (IRS) has not disclosed the income limits for the benefit corresponding to 2022 . Not to mention, there is still a chance that Congress will act before the child tax credit returns to its pre-payment level at 2021.
The only way for the Child Tax Credit to return to its previous format, that is, with advance payments, is if the Democrats unanimously approve the budget to launch the Build Back Better budget program, which includes the tax credit. But so far they do not have the necessary votes, Senator Joe Manchin is missing.
Although Manchin is a Democrat, he opposes to the amount that would be allocated to the bill, in addition the senator does not want to extend the monthly payments of the Child Tax Credit. The social spending package promoted by President Biden is an issue with which he does not agree, considering it a great expense.
Days before Saying he would not support the social spending package, Manchin told the White House he would support continuing monthly Child Tax Credit payments only if it included a mandatory work requirement for parents and payments were limited to families, he proposed income limits were less than $60,000 annual dollars.
If Democrats had given in to the senator’s request for a revenue cap of $75, dollars per year, then, under that criterion, millions of Americans would lose the benefit of the Child Tax Credit for this year and probably for the that follow.
The supports delivered from this improved tax credit, represented $3, dollars for children from 6 to 17 years and $3, 600 dollars for children 5 years old or younger, were awarded this year to single filers whose modified adjusted gross income was less than $80, dollars per year and couples filing jointly earned up to $100 ,00000 dollars per year.
Those who earn more than that could still get a $2 credit,000 dollars, but those who were completely eliminated were those with an income of more than $ 200,000 dollars per individual taxpayer and more than $400,000 dollars per family.
Although the outlook is not the best for the Democrats, they can still pass the legislation, they have until the end of the month to do so, but they require all the votes of the caucus, for what Joe Manchin has the last word for the social spending package to become a reality or be legislatively buried.
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