The Child Tax Credits Have Ended so Expect Less in Your Account
When you check your checking or savings account this weekend you may be a little or a lot short. Over the past 6 months, families have been receiving stimulus checks or payments in the form of child tax credits. Depending on how many children you have and their ages determined how much you received. Well unfortunately all good things must come to an end and the cut-off for these payments has arrived.
Since July of last year, most American families have been receiving the additional stiumuls payments. It was around $300.00 for each child under 5 and $250.00 for each child between the ages of 6 and 17. The program was a part of the American Rescue Plan Act of 2021. It increased the standard child tax credit for 2021 from $2,000 to $3,000 and up to $3,600 for families with kids 5 and under for each child.
The last payment was December 15th 2021 (12-15-21). The way the program worked was splitting the child tax credit in half. The first half was paid in monthly installments and the remaining balance will be claimed on your 2021 taxes when you file them. So half of the money was paid out the other half will be refunded or applied to your 2021 taxes. In the meantime, families will have to get used to not having the extra money.
So don't be surprised when you check your account on the 15th and you're light. There were talks about extending the program and continuing the payments, but those talks have stalled. Over the past 6 months, families have become accustomed to having that little extra so cutbacks on spending and another look at the monthly budget will have to happen, myself included. At least the remaining balance of the child tax credits can be claimed on our 2021 taxes and if refunded it'll be in a lump sum payment.