Two moreare on the schedule for this year, with the second half of the payments arriving during tax season in 2022. By the end of this year, families will have received six advance installments, totaling up to -- an increase from previous years. But the big question still remains: Will the new enhanced child tax credit payments be extended beyond 2022?
There's a possibility that the revamped benefit could be extended, depending on the final details of President Joe Biden's spending plan. Currently, Democrats are negotiating how long it will continue -- the debate is leaning towards one year.
Until it becomes final legislation, there are still several deadlines for the remainder of this year's credit that parents need to be aware of. For example, families that are choosing to opt out of the advance payment program need to do so before Nov. 29 -- here's. It's also a good idea for families to update their banking details, income and mailing address through the IRS sooner rather than later. And here's what to know if you received the .
The latest on the enhanced child tax credit getting extended past 2022
Given the popularity of the program with millions of families, there's a chance the credit could be extended. A recent study published by the Urban Institute shows that if the child tax credit is extended beyond 2021, it could substantially reduce child poverty in the vast majority of US states. And most recently, the Democrats are in talks about extending the credit for just one year due to slimming the spending amount of the bill.
A Washington-based think tank called the Bipartisan Policy Center put out a proposal for permanently expanding the child tax credit. On Sept. 15, more than 400 leading economists sent an open letter urging Congress to make the enhanced credit permanent. The letter noted that the benefit would help families with immediate necessities, like food and utilities, and could drastically improve children's health and education.
Most recently, Lawmakers proposed extending the child tax credit to just one year, in an effort to trim the cost of President Joe Biden's $3.5 trillion plan. But others are still pushing for the credit to be extended to 2025.
For instance, House Democrats came up with a proposal to keep the increased benefit going until 2025, which would also allow low-income families who don't earn enough to owe taxes to get the benefit. Some are looking to approve its extension in the spending bill through a process known as budget reconciliation, which requires a simple majority vote in the Senate.
But congressional Democrats are divided over the benefit. In a CNN interview, Sen. Joe Manchin of West Virginia expressed reservations, saying he'd prefer that parents be eligible to receive the credit only if they work and file taxes. His vote is critical for the bill to pass the Senate.
According to an Insider report, other Democrats are considering extending the current child tax credit payment program until 2024 instead, but the amount of money would be less than this year's payments, that is, reverting to the lower amounts from prior years.
Remaining deposit dates for the child tax credit payments
The IRS has two more rounds of advance partial payments to send to. Here are the payment dates to keep track of November through December 2021 and in 2022:
- Nov. 15
- Dec. 15 (last payment of 2021)
- Tax season 2022 (remainder of money)
After you receive whatever monthly payments the IRS sends you this year, the remainder of your money will come with your tax refund in 2022, after you file your 2021 tax return next spring. While the IRS did extend the 2020 and 2021 tax filing dates due to the pandemic, you typically have from the end of January to April 15 to file.
Remaining deadlines to unenroll from advance checks
If you decide tothis year, you still have time to have the remainder of your child tax credit money show up next tax season. You may decide to unenroll, for example, if you think you may need to when you file your taxes in 2022.
Note that the IRS opt-out deadlines are about two weeks ahead of the payment dates. If you miss one deadline for a round of checks, your changes will take effect with the next round. And these are the same deadlines you need to hit for making other changes to your account, such as adding your banking information or changing your mailing address. The Update Portal doesn't yet allow you to make changes to your marital status and number of dependents.
Here are the remaining dates by which you would need to unenroll:
- Nov. 29 (for December payment)
Can families determine how the credit will affect tax season?
To help you file your taxes next year and either claim whatever amount the IRS still owes you or -- much less likely --you received but didn't qualify for, the IRS will send you a letter in January 2022 with the total amount of child tax credit money you received in 2021. You'll use information from this letter, which the IRS is calling Letter 6419, when you file your tax return.
For more, here's everything you need to know aboutand what to do if you need to a missing payment. Here's also what we know about what the spending bills making their way through Congress .