In 2021, parents used their monthly Child Tax Credit (CTC) payments to cover necessary expenses and pay off debt. But the Biden administration has struggled to bring CTC payments back in 2022, leaving many families without the financial help they depended on last year.
Letting the expanded CTC expire diminishes faith in the Democratic Party to support parents with children, says a January poll Data for Progress. Conversely, Democrats who plan to expand payments are more reliable in supporting parents with children.
To gauge a baseline sentiment, likely voters were asked “Which party do you trust most to support parents with children?” — among them, 50% chose the Democratic Party while 41% sided with the Republicans. Then, the respondents were divided into two distinct groups. The first sample was told that “Democrats have allowed the Extended CTC to expire” and the second was told that “Democrats will decide whether to continue the Extended CTC through 2022.”
When asked again which part they trusted most to support parents, the samples had different feelings. Respondents who were told the Democrats were letting the CLC expire had reduced confidence in the party, while those who were told the Democrats were working on an expansion of the CLC reported increased confidence.
Keep reading to learn more about the expanded child tax credit, as well as what Democrats are doing to extend the benefit this year. And if you’re looking for ways to save money and pay off debt after CTC payments expire, you can visit Credible to compare interest rates on a variety of financial products like card consolidation loans. credit.
YOU COULD SEE A LOWER TAX REFUND THIS YEAR, AND THAT’S WHY
Will Democrats Reinstate Child Tax Credit Payments in 2022?
The IRS child tax credit was temporarily extended in 2021 when President Joe Biden signed the american rescue plan in the law. The maximum amount of the credit has been increased to $3,600 for each child up to age 5 and to $3,000 per child under age 18, from $2,000 previously. The credit was also issued in monthly installments worth up to $300 per child, rather than as a lump sum during tax season.
The expanded CLC expired in December 2021 after Congress failed to pass the Build Back Better Act, Biden’s spending bill. The legislation would have continued monthly child tax credit payments through 2022, but it hasn’t garnered enough support from moderate Democrats like Sen. Joe Manchin of West Virginia.
Lawmakers are now looking for ways to restore the expanded child tax credit as they resume negotiations on Build Back Better. A group of Senate Democrats recently sent a letter to Biden urging him to prioritize monthly CTC payments, calling them “the biggest investment in American families and children in a generation.”
Democrats will need to enlist the support of holdout moderates in order to pass Build Back Better and make CTC payments permanent. However, Manchin has previously said he will not support the expanded CTC unless a work requirement is added for beneficiaries.
As Congress scrambles to find a compromise on the child tax credit, recent polling data shows voters are losing faith in the Democratic Party to support parents with children. It should be noted that American families did not receive monthly payments in January or February.
If you’re struggling to meet your expenses without the monthly CTC payment, you may be looking for ways to reduce your expenses. One way to save money is to consolidate high-interest credit card debt into a personal loan at a lower interest rate. You can compare debt consolidation loans on Credible for free without affecting your credit score.
5 REASONS TO FILE YOUR TAX RETURN EARLY
Expanded child tax credit popular with voters
Likely voters polled by Data for Progress overwhelmingly approved of expanding the child tax credit, with 59% supporting and 35% opposing. Support for the expanded CTC has remained relatively constant since last July and strengthened in January, when eligible families stopped receiving monthly payments.
Despite the popularity of the expanded CTC, Democrats have so far been unable to restore monthly payments in 2022. Recent research shows that letting the expanded CTC expire may have consequences for low-income families who depended on it the most.
The Center on Budget and Policy Priorities (CBPP) estimates that making the expanded Child Tax Credit permanent could reduce child poverty by more than 40%. The CBPP also found that about 9 in 10 low-income families used monthly CTC payments to cover basic household expenses, such as food, clothing and shelter.
Low-income families who have been affected by the expiration of child tax credit payments may qualify for the following government programs:
However, not all Americans will meet the eligibility criteria for federal benefits due to income limits. If you’re making too much money to qualify for these programs, you might consider taking out a lump sum personal loan instead of incurring high-interest credit card debt. You can browse the current personal loan rates in the table below and use Credible’s personal loan calculator to estimate your monthly payments.
CHECKLIST FOR TAXPAYERS: WHAT TO KNOW BEFORE TAX SEASON
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