Fourth stimulus check with live updates: income tax return, social security increase, health insurance, child tax credit …
Moderates and progressives agree on child tax credit
Democrats are negotiating a series of measures to help American families through the Build Back Better bill taking shape in Congress. One proposal is to extend the changes to the child tax credit for fiscal year 2021. These included repayment of the entire credit Thus, Americans who do not pay federal tax could still benefit from the credit, this feature could halve child poverty.
To increase the efficiency of the tax provision and provide additional financial security to eligible families the credit is paid in monthly installments. Since payments started in July, this year there will be six installments for half the credit and families can access the rest they are entitled to next year when they file an income tax return.
However, if the changes were extended or made permanent, families would receive 12 installments evenly dividing the credit a family can claim per child over the year. The length of time credit changes will be extended is currently in limbo with two Democratic senators pushing to lower the price of the expense bill.
Progressives and moderates, however, agree that there should be no work requirement as Senator Joe Manchin requested and being fully refundable will do families a great deal of good and save the nation money in the long run. By supporting families with children until they reach adulthood, these children will grow up with better job prospects, better health, and less likely to get involved in crime.