The expanded child tax credit, brought into being by the American Rescue Plan Act back in March, has created payments from the government to families with children in each of the last six months of the year. The most recent payment went on September 15, with the next set for October 15.
However, recipients of the child tax credit have the option of opting out of it, if they find it advantageous to do so. And the deadline for opting out is coming up.
The site also looked at why families might want to opt-out of the credit.
“Depending on your income, if you started receiving child tax credit payments in July, your monthly payment can be as high as $300 for each child in your family who is five years old or younger or $250 for each kid six to 17 years of age,” Kiplinger said. “(Larger payments could be sent if you begin receiving monthly payments after July.) That can add up to a lot of extra money in your pocket. For example, if you have three kids ages two, seven, and eleven, you could get up to $800 from the IRS each month if you started receiving payments in July.”
As for the question of whether the expanded child tax credit will continue beyond 2021, that may very well be determined by negotiations in Washington this week.
The Biden Administration wants to extend the expanded child tax credit through 2025, as part of its “Build Back Better” reconciliation package. However, reports this week indicate that changes may be made to the policy in order to get the package through.
According to Politico, “House Democrats don’t just want to expand their signature Child Tax Credit payment program, they also want to redefine what it means to be someone’s child…. As part of their sweeping reconciliation plan, they are proposing to overhaul, for the first time in almost a generation, the legal definition of a child that’s used to claim the hugely popular break. But that’s not as simple as it sounds, and implementing it could become a bureaucratic nightmare.”
At the same time, Sen. Joe Manchin (D-WV), whose vote is almost certainly needed if the package is to pass, has expressed skepticism over continuing the child tax credit in its current form, especially since the payments do not have any type of work requirement attached.
Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.