But that much-welcomed extra cash is about to end.
The payments scheduled for Wednesday, Dec. 15, will be the final round for the monthly child credits.
Why Are the Child Tax Credits Ending?
This post refers to advance child tax credit payments issued in 2021. For the most up-to-date info, check out ourrecent tax articles.
In March 2021, President Joe Biden signed the $1.9 trillion American Rescue Plan into law.
Along with $1,400 stimulus checks for most Americans, the bill provided atemporary child tax credit boost.
Temporary is the key word here.
The bill raised the value of the child tax credit from the typical $2,000 maximum per child.
Half of the credits were available as monthly installments.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
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Could Congress Extend the Expanded Credits?
Its possible, but dont count on it.
But as of Dec. 13, the bill remains at an impasse in the U.S. Senate.
Unless Congress takes action before years end, the payments will end on Dec. 15.
If the extension expires, child tax credits will revert to the normal amount.
However, the payments wont be available in advance monthly installments.
That means youd have to wait until tax time to receive the credit.
How Do I Get the Other Half of the Credit?
The only way to get the remaining half of the credit is to file your 2021 tax return.
Typically, it’s possible for you to file your taxes starting in mid- to late January.
Doing so could have additional benefits.
Many low- and middle-income families are also eligible for theEarned Income Credit.
A family with three or more qualifying children could receive up to $6,728 for 2021.
There are plenty offree tax filing softwareprograms that simplify the process.
But its vital that you file online instead of by mail.
Submitting a paper return could add weeks, if not months, to your wait time.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected]or chat with her inThe Penny Hoarder Community.
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