Fourth stimulus check live updates: tax return, Social Security raise, Medicare, Child Tax

Moderates and progressives agree on Child Tax Credit

Democrats are negotiating a raft of measures to help American families through the Build Back Better bill taking shape in Congress. One proposal is to extend the changes made to the Child Tax Credit for the 2021 fiscal year. Those included making the entire credit refundable so Americans who didn’t pay any federal taxes would still be able to benefits from the credit, this feature could cut child poverty in half.

To increase the effectiveness of the tax provision and provide additional financial security for eligible families the credit is being paid out in monthly installments. Because the payments began in July, this year there will be six installments for half of the credit and families can access the remainder that they are eligible for next year when they file a tax return.

However, should the changes be extended or made permanent families would receive 12 installments equally splitting the credit a family can claim per child over the full year. For how long the changes to the credit will be extended is in limbo right now with two Democratic senators pushing to reduce the price tag of the spending bill.

Both progressives and moderates agree though that there shouldn’t be a work requirement as Senator Joe Manchin called for and being fully refundable will do the most good for families and save the nation money in the long run. By supporting families with children until they reach adulthood, those kids will grow up to have better job prospects, better health and be less incline to get involved in crime.

Read More: Fourth stimulus check live updates: tax return, Social Security raise, Medicare, Child Tax

2021-10-24 17:27:55

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