Millions of families are rejoicing as the IRS sends out the fourth round of souped-up child tax credit payments. But without action from Congress, the jubilation won’t last much longer.
After October’s deposit, only two more advanced payments remain. And that’s not what struggling families want to hear.
In fact, a new poll says one in three Americans feel the expanded payments shouldn’t just stick around for a while longer — they should be made permanent.
For now, it’s unclear whether the program will survive the end of the year, let alone forever. Families counting on more financial support would be wise to start preparing by making a few moves of their own.
A short-lived lifeline
This past week, the IRS sent more than $15 billion to the families of about 61 million children, thanks to enhancements found in President Joe Biden’s COVID rescue package.
The boosted child tax credit (CTC) gives families up to $3,000 per child aged 6 to 17 and $3,600 per kid under 6. Families are currently receiving half the credit in monthly instalments — up to $300 — until the end of the year and can claim the rest in tax refunds next year.
Four months in, the program has built a loyal fan base. Half of the nearly 2,000 people surveyed in a Politico/Morning Consult poll earlier this month approve of the expanded payments. Only 38% oppose, and the remaining 11% have no opinion.
Stimulus checks and tax credits have helped keep many Americans fed, housed and healthy despite the mass layoffs early in the pandemic and soaring inflation. Some 38% of households suffered serious financial problems this year, according to a study released this month by NPR, the Robert Wood Johnson Foundation and the Harvard T.H. Chan School of Public Health.
Keep in mind, that’s how many families are struggling even though two-thirds are receiving financial assistance from the government, the study says.
Without an extension, next year’s CTC will revert to $2,000 for each child 17 and under. It will also stop being distributed via advanced payments and lose a number of provisions that ensured more money got into the hands of the nation’s poorest.
Build Back Better plan starts to crack
A quick search online will pull up numerous petitions with thousands of signatures asking Congress to preserve the expanded CTC. More than 80,400 people have signed a petition sponsored by several advocacy groups on ActionNet.org.
Top Democrats want to make the expansion permanent, too, including House Speaker Nancy Pelosi, Treasury Secretary Janet Yellen and the president himself.
For the moment, President Biden is aiming to extend the current tax credit through 2024 or 2025 as part of his “Build Back Better” agenda.