SIOUX CITY, Iowa (KCAU) – The fourth round of child tax credits will be available to millions of American families on October 15.
The American Rescue Plan has increased the child tax credit for millions of American families, some up to $ 1,600. But, the future of monthly payments is still uncertain.
Shelly Hexom is a mother of two. She explains how monthly payments rather than a one-time tax credit have helped her family.
âIt’s been very helpful, you know, I mean child care, obviously, is something that you need all year round. It’s not just a once-a-year thing that you usually pay off. At least for our family, you know, it’s something that we pay for all year round and so our kids go into an after-school program so that, you know, my husband and I can work, âsaid Shelly Hexom.
With the increase in credits and now monthly payments, your 2021 tax returns will also be impacted.
âIt was actually an advance on the child tax credit that people were getting. They would usually receive the full tax credit when they filed their income tax return, but this year the government gave them an advance for the last six months of the year. So when they file their tax returns next year, they’ll have to reconcile the amount they’ve already received, âsaid Susan McGuire, editor-in-chief of the Center for Siouxland Grant.
McGuire cites the global pandemic as the reason these payments have been broken every month to help American families.
âI know a lot of them that are struggling, battling COVID, you know, because of some disease or whatever, and they’ve had to take time off work or they haven’t returned to work,â McGuire said. .
âAnyone with kids knows that babysitting is expensive, and you know, for people who, maybe you don’t have a family nearby who can help babysit or something like that. during the day, like our family, you know, we rely on child care and after-school programs, daycares and things like that to help you, âHexom said.
Last month, House Democrats proposed a deal that would extend the extended child tax credit until 2025. But for now, a deal to extend the extra benefits has not been reached and is expected to be. adopted by the House and the Senate.
For more information on the child tax credit, who qualifies and whether it makes more sense for your family to opt out, click here.