Since December, payments for the child tax credit, which has been credited with bringing millions of American families out of poverty, have been suspended.
As the economic consequences of the COVID-19 epidemic continue to be felt, efforts to reinstate the monthly payments are being resurrected.
The road to the second round of payments, or even to making them permanent, is not without its difficulties.
The payments for the child tax credit were included in President Joe Biden’s American Rescue Plan, which was signed into law in March 2021.
The existing child tax credit was increased from $2,000 to up to $3,600 per kid for those under the age of five, and from $3,000 to $6,000 for those between the ages of six and seventeen.
During this time period, half of the credit – either $1,800 or $1,500 – was to be paid in monthly instalments of $300 or $250 per kid, which were to be paid from July to December 2021.
The remaining amount can be claimed when filing taxes for the year 2021 in 2022.
Congress was unable to prolong the payouts through December, but a proposal by Sen. Mitt Romney, R-Utah, might give the program new life.
As part of Romney’s “Family Security Act,” he would provide up to $350 per month each child from birth to age 5 and $250 per month per child from age 6 to 17 under certain conditions.
According to the proposed adjustment, the total child tax credit for early children would be increased to $4,200, with the benefit remaining at $3,000 for children aged 6 to 17.
For single taxpayers, the income threshold for receiving payments would be $200,000 and for joint filers, it would be $400,000, according to Romney’s plan:
Benefits will be lowered by $50 for every $1,000 in excess of the present child tax credit limits, just as they have been in prior stimulus proposals.
One modification to Romney’s plan is the inclusion of a benefit for pregnant parents. Parents can apply for the benefit up to four months before the due date of a new kid is expected to be born.
The maximum monthly stipend per family will be $1,250, and each child must have his or her own Social Security number in order to be considered for this program.
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You may find out how Romney’s plan would be funded by visiting this page.
While Romney’s idea has not yet been officially submitted as law, it is already gathering support from both Democrats and Republicans.
According to reports, U.S. Senator Sherrod Brown, D-Ohio, met with Romney to discuss his idea and efforts to make the child tax credit payments permanent.
Brown later stated that he was optimistic that the payments would restart – at some point.
In Brown’s words, “it’s going to happen, and I hope it will happen in a bipartisan manner.”