Stimulus Update: Sixth and Possibly Final Child Tax Credit Drops Today
The sixth and final installment of the advance portion of the child tax credit is set to hit bank accounts today. However, unless legislators decide to expand the advance monthly payments of the child tax credit, there will be no additional monthly checks paid in 2022.
These monthly payments, amounting to either $300 or $250 per dependent eligible child, were part of the stimulus relief bill signed into law during the pandemic as an effort to help struggling families recover from the financial effects of COVID-19. Six monthly payments were paid out totaling half of the full $3,600 benefit amount. The other half will be available to claim during next year at tax time.
Unlike other tax credits, this year’s child tax credit was fully nonrefundable which means you do not have to pay it back. It is free money from the government, as long as you fell within the income thresholds. Also, unlike other tax credits and even child tax credits of years past, it was not necessary to even be a taxpayer in order to receive the benefit this year — even unemployed persons or those who made too little to file taxes were able to receive the benefit.
The credit has been met with overwhelming support and has already begun to have profound effects on the low-income families it was intended to serve. Just the monthly advance portions of the child tax credit payments have lifted millions of children out of poverty since July, and tens of thousands of more out of food insecurity.
President Joe Biden has long made clear his ambitions to continue the tax credit, originally aiming for its continuation through 2025, but ultimately pushing for checks to be deposited through the end of 2022.
As of right now, there is no official extension to the child tax credit advance monthly payments, so today’s payment is considered to be the last monthly child tax credit benefit payment.
If you missed the sign-up window for the advance payments, you will be able to claim the full benefit amount during tax time next year.
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