Families with children should know that the Biden administration has approximately $193 billion in waiting — all they have to do to claim it is to file their taxes.
This is the estimated amount of the child tax credit that remains, and the administration is concerned about the possibility of some people not receiving the assistance they need.
President Joe Biden increased payments and expanded eligibility as part of his coronavirus relief program. Although most families received the credit in monthly payments last year, the balance will be lost if they don’t file their taxes.
On Tuesday, Vice President Kamala Harris, Treasury Secret Janet Yellen, and Gene Sperling, White House senior adviser, held a virtual event to encourage people to submit their tax forms to IRS.
Harris stated that parents should visit childtaxcredit.gov in order to verify their eligibility. April 18th is the deadline for tax filings
Harris stated that “the truth is that there are many people in this country who work hard everyday and still struggle to make ends meet.” You still have to file your taxes. This is the only way you can get the second half of the amount that you owe.
This public push comes at an important juncture in the U.S. economy as well as the child tax credit program. The inflation rate is at an all-time high of nearly 40 years. This means that the credit money will be used to offset the rising costs of food, gasoline, and other goods. The Senate has blocked attempts to extend the credit for an additional year. Advocates should show how credits have helped reduce child poverty by around 40%.
Yellen stated that research shows that payments are one of the most promising strategies to combat poverty. Recent research has shown that money is linked to increased brain activity in babies born to poor mothers.
“There’s no doubt that these policies improve the lives of millions of people and lift up our country,” Yellen stated.
Many lawmakers and non-profits have joined the outreach effort. There are plans to host events in all 50 US states and Puerto Rico during tax filing season. Yellen pointed out that nonprofits often do a better job reaching out to the poorer population.
Biden raised the child tax credits from $3,600 per child for children aged 5 and under to $3,000 annually as part of the $1.9 trillion Coronavirus Relief Package. Since July last year, the government has been sending out monthly payments to taxpayers. This means that six months of payments are still available for those who file their taxes.
According to the administration, approximately 58 million households will be eligible for the credit. It is an average of $3,300. The credit can be used to offset existing taxes or as a refund.
Additional help could be available for workers without children if they file. The relief package almost tripled the earned income credit for workers who are not dependent on children. 17 million people could get credits of $1,500.
Child poverty was reduced to its lowest level ever by expanding child tax credits. Recent analysis by Washington University in St. Louis researchers and Appalachian State University showed no evidence that parents stopped working due to the monthly payments. Critics argue that increasing the credit limit and making it fully refundable, which guarantees that the benefit is available to all families except those with lower incomes, will lead to fewer people being able to work and cause a slowdown in the economy.
Biden, as part of his “Build back Better” agenda, pushed for the continuation of the expanded child tax for an additional year. Democrat Joe Manchin, West Virginia’s Democrat, opposed the expanded credit because he was concerned that the price tag might increase the deficit and worsen inflation.
