Child Tax Credit Will Revert to $2,000 This Year
Despite of the best efforts of President Joe Biden and many members of Congress, the child tax credit will return to its pre-2021 rate of $2,000 per child in 2022.
As part of the American Rescue Plan, the tax credit had been increased to $3,600 per child under age six and $3,000 per child age six to17 — up from age 16 for the standard credit. Families could receive half their credit as advance monthly payments that were distributed from July through December of last year. The full credit began phasing out at certain income levels: $150,000 for married joint filers, and $112,500 for those filing as single or head of household. The credit was hailed as “the largest child tax credit ever and historic relief to the most working families ever” in a statement from the White House.
Unless the Build Back Better Act, which calls for an extension of the expanded, advance CTC, passes, families will not receive monthly payments of $250 or $300 per child in 2022. The Build Back Better bill was introduced in the House of Representatives on Sept. 27, 2021, and passed in November 2021. But it has been stuck in the Senate since then, lacking the support of Democratic Senator Joe Manchin of West Virginia. Without his vote, the bill cannot pass through a process called reconciliation, which requires full support from the Democratic caucus but no Republican votes.
More From GOBankingRates