CHILD TAX CREDIT PAYMENTS START
Child tax credit payments start. In the aftermath of the Covid-19 pandemic, and the economic fallout left in its wake, millions of struggling Americans are rejoicing over the Chic Tax Credit Payments that the Biden Administration ushered in as part of the Covid relief bill. Those payments are scheduled to start and will make a perculating economy move along much faster. One of the concerns that had been voiced to Candidate Biden was that then President Obama when faced with the economic disaster after 911, acted to small and the relief package should have been bigger. hindsight is golden, but President Biden had the advantage that Obama didn’t and wanted to make sure he didn’t add enough fuel to the economy to prevent a malaise and slow start, that could have lingered on for several years had the economy not taken off. Child tax credit payments start.
The IRS started issuing payments to families of up to $300 per child under a program aimed at combating child poverty and turning lump sum annual tax refunds into predictable household income. The Biden Administration said it paid about $15 billion, mostly through direct deposits, to families with nearly 60 million children. Those monthly payments will continue through December, and Congress is debating whether to continue them. Congress expanded the credit by almost $100 billion as part of the Match coronavirus relief law. The credit had been worth up to $2,000 for children age 16 years and under. Now, it is worth $3,000 for children age 6 to 17 and $3600 for those under 6.
The expanded portion of the payments starts shrinking once income reaches $75,000 for an individual and $150,000 for a married couple. Households above those levels still get the $2000 credit, which retains the prior income phaseouts starting at $200,000 for individuals and $400,000 for married couples. Families with tax debt may use the money to obtain a Tax Resolution Company. The credit is also now fully refundable, which means low income families qualify even if they don’t owe income taxes. Before this year, just $1400 of the $2000 was refundable.