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Looks like monthly payments will likely be delayed and not begin in July now from what the IRS is stating. This brings up whether they decide to make this more permanent and not related to income floors, if SSA should just handle the payments for the program rather than the IRS. Romney's bill pushed for that and I don't see why Democrats would be opposed to it either. The main protest to the idea would be those who think the credit should only be given to those making income so that it's mainly or partially a non-refundable credit.
New $3,000 child tax credit might not come with monthly payments, IRS says
CNBC
I think the monthly payments in the second half of the year would be a huge deal in terms of how the debate unfolds for a permanent restructuring goes. If a bunch of American's receive monthly payments through the second half of the year, there would be far more pressure to continue it that way then if they just notice a bump in their tax return over a year from now.
New $3,000 child tax credit might not come with monthly payments, IRS says
CNBC
The child tax credit payments authorized in the latest Covid relief bill may not be sent monthly and may not even start in July, IRS Commissioner Charles Rettig said.
The $1.9 trillion American Rescue Plan signed into law by President Joe Biden on March 11 contained a significant expansion of the child tax credit. Under the law, families will receive a $3,000 annual benefit per child ages 6 to 17 and $3,600 per child under the age of 6 for the 2021 tax year.
The payments to families were slated to begin in July and intended to be sent monthly, instead of as a lump sum, as House Democrats proposed. But that might not happen, especially now that the IRS has extended the tax-filing season for individuals to May 17 from April 15, Rettig said during a Thursday hearing with the House Ways and Means Committee.
That’s because the IRS now has less time to devote to implementing and launching a portal for the program, which it must do by July 1, Rettig said.
“I don’t have the resources to devote to that portal until the filing season ends,” said Rettig.
In addition, it might not be possible for the IRS to send monthly payments, at least at first, according to Rettig.
To see how much you could expect to receive, personal finance website Grow created a calculator that factors in your filing status, annual income and the number of dependents you have.
I think the monthly payments in the second half of the year would be a huge deal in terms of how the debate unfolds for a permanent restructuring goes. If a bunch of American's receive monthly payments through the second half of the year, there would be far more pressure to continue it that way then if they just notice a bump in their tax return over a year from now.
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