Eligibility for the expanded child tax credit was based on the beneficiary’s adjusted gross income (AGI). Individuals with an AGI of less than $75,000 or married couples with a combined AGI of less than $150,000, were entitled to receive the full amount of the child tax credit.
The regime should reduce child poverty by 40% in five years, but was first reduced to a single additional year and then dropped altogether. Democratic Sen. Joe Manchin has worked to thwart the Democratic party on Capitol Hill and no serious legislation has been passed for months. In fact, the end of the expanded child tax credit coincided with an increase in child poverty.
While the long-term future of credit looks bleak, the good news is that there is still time, albeit soon, to receive the money you are owed. If you were eligible for funding based on your salary at any time in the past year, then you are likely to be the recipient of a healthy tax refund.
I didn’t receive any monthly child tax payments last year, but I think I was eligible, what’s going on?
If you elected not to receive monthly payments or did not file your taxes in 2021 or 2020, then You do not have to worry; if you were eligible at any time in the past year and have no outstanding tax bills, you should receive a refund from the IRS. This could go up to $3,600 per childdepending on their age and your income.
All you have to do is file your taxes by the April 18, 2022 deadline and the IRS will refund all the money you would be entitled to. In fact, it could put you in a better position compared to some who received the monthly payments, because by receiving the money as a lump sum, you are not at risk of being asked to reimburse you by the IRS.
Some who were eligible to receive the funds with their 2021 tax return may have received a pay rise when the child tax credit was rolled out. If so, this will be removed as additional tax by the IRS when issuing tax refunds and deductions.