Families in the U.S. are expecting another cash infusion following the third child tax credit payment release on September 15. Taxpayers with children below 17 years old could automatically get $250 to $300 per child as the Internal Revenue Service (IRS) distributes the monthly benefit via direct deposit on their nominated bank accounts.
The IRS has three more monthly child tax credit payments to disburse in October, November, and December, while the rest of the expanded benefit will be given in lump sum during tax season in April 2022.
Heads of households who make $112,500 a year or joint filers who earn a combined income of $150,000 or more may qualify for child tax credit payments. However, more low-income parents became eligible to receive the fully refundable benefit this year as part of the pandemic's $1.9 trillion relief package.
Before the pandemic, the Treasury Department estimated that 26 million children, especially in Black and Latino families, were excluded from full credit due to their parents' low income. According to CNN, lawmakers ensured that low-income parents would be protected from overpayments as those who earn $50,000 or $60,000 (joint filers) will not have to repay the excess of the benefits.
Democrats are working out an extension of the child tax credit payments until 2025. Experts believe that this initiative will help cut child poverty in the U.S. by 50 percent.
First Lady Jill Biden Pushes for Extension
On Wednesday, during her visit to Iowa, First Lady Jill Biden discussed her support for the child tax credit extension until 2025 as she believes this will "keep families afloat." Speaking to a crowd in Des Moines, the first lady said that school supplies alone are very expensive, and the extra $300 cash infusion from the government will allow parents to pay and purchase what their kids need.
"If you have to take a trip to urgent care or when you get that bill for your kid's braces, you know that extra $300 means that you can stop holding your breath," Biden said.
According to the U.S. Census Bureau, 47 percent of American families spent their previous payments on food, while 26 percent said they used the money for school expenses.
West Des Moines Rep. Cindy Axne said that the extension is a top priority for mothers in the House of Congress. While there are not many of them in the group, they are working hard to ensure that this will be tabled at the deliberations.
However, critics of the plan said the extension would prevent people from joining the workforce, which will impact businesses. However, the mothers in politics argued that workers are not seeking out jobs because of their problems with childcare and the general risk of the coronavirus.
Democrats Make their Move
On Monday, House Democrats released its plan for the Expanded Affordable Care Act subsidies for 2025 that covered child care tax credit payments. According to NBC, the extension now included "technical changes," allowing more taxpayers to file for a claim even if they still do not have a Social Security number.
Amendments to the bill are expected to be undertaken in the coming months before the House goes into a vote. For Democrats to succeed with the extension, they will need 50 supporters in the House.
On the other hand, the Senate is negotiating a different extension of the Expanded Affordable Care Act subsidies. Lawmakers are still negotiating where to get the funding for this proposal.
Related Article: Child Tax Credit: Important Dates Parents Need To Remember
