December child tax credit payment could be the last
Children draw on a treasury check prop at a rally outside the United States Capitol on December 13, 2021.
Alex Wong | Getty Images
The IRS and the U.S. Treasury Department end the last monthly child tax credit payment of the year to millions of U.S. families on December 15.
This may be the last monthly benefit payment.
If the improved credit is not extended, nearly 10 million children risk falling below the poverty line or falling even deeper into poverty, according to an analysis by the Center on Budget and Policy Priorities, a think tank progressive. Another 27 million will lose all or part of the credit.
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The Child Tax Credit was enhanced by the American Rescue Plan, which increased the benefit from $ 2,000 to $ 3,000, with an additional $ 600 for children under 6, made it fully refundable and introduced six monthly installments running from July to December.
“If we fail to do the right thing, we will see a huge carpet in our country falling away from so many families who have now gone from stress to blessing,” said Senator Cory. Booker, DN.J., on a Tuesday call with reporters.
Without the extension, families will stop receiving the monthly amount during a difficult time of the year.
Inflation has increased, making the prices of many everyday items such as food, rent and gasoline more expensive. It’s also the dead of winter, when many families experience their highest utility bills of the year.
âFor working class families and middle class families at a time of rising prices – gasoline prices and food prices – this has been a lifeline,â Booker said. .
This lifeline has relieved families’ financial instability and anxiety, helped them put enough food on the table, and even reduced child poverty. It is expected that if the enhanced benefit continued, child poverty would be reduced by 40%, a progress that will be reversed if the credit is not extended.
An imminent deadline
Democrats want to extend the benefit for a year and have included the measure in Biden Build Back Better’s $ 1.75 trillion bill.
But the time to pass the bill without interrupting monthly payments – which many families now rely on – is running out.
Unless legislation is approved by Dec. 28, IRS won’t have enough time to ensure families receive payment by Jan. 15, Senate finance president said , Ron Wyden, D-Ore., Said.