Back in 2021, the temporary expansion of the Child Tax Credit resulted in a huge benefit for many people, especially the families struggling with poverty. The Child Tax Credit in 2021 reduced the financial stress during the post-pandemic time. In addition to that, it also reduced food insecurity. However, the temporary expansion is now over, and the people are wondering about the Child tax credit June Update. With the end of the Child Tax Credit in December, many families are again facing the burden of financial stress. Thankfully there is good news with the Child tax credit June Update.
What Was The Previous Child Tax Update?
Last year, the Child Tax Credit of 3600 dollars was available for:
- Couples making less than $150,000
- Singles making less than $75,000
During the tax return, many couples successfully claimed $1,800, followed by another claim of the same amount.
The Internal Revenue Service further checked the eligibility. The eligibility was checked based on the tax returns of 2019 and 2020. However, not everyone has filed for a tax return.
Child tax credit June Update
The families that did not file their tax returns could not claim the Child Tax Credit last year. However, there is now an opportunity for them to claim the unclaimed money. This will be helpful for many families who managed only to claim half of the Child Tax Credit. According to the Child tax credit June Update, the other half of the Child Tax Credit can be claimed in two ways:
- Filing tax return
- Using the GetCTC simplified filing tool
The parents who have the deadline for tax filing, can use the GetCTC simplified tool to claim the rest of the Child Tax Credit. This form is simple to fill out and does not require one to submit any tax documents.
In addition to that, parents who have new babies born in 2021 also have the freedom to file their tax returns for claiming the new benefits. This is true for all the families who have not received any advance payment. When claiming Child Tax Credit on the basis of Child tax credit June Update, the families should keep the letters received from the IRS handy. This letter contains information like the monthly Child Tax Credit they have already received and the payment they can further claim. The information entered during the 2021 tax return and the IRS later must match for early disposal of the fund.
What Else Is New Regarding Child Tax Credit?
Apart from the fact that the families can claim the Child Tax Credit of 2021, there is no new development regarding the Child tax credit June Update. Interestingly, Democrats are asking for a renewal of the Child Tax Credit but it has not happened yet. Previously, the Center on Budget and Policy indicated that the expansion of the Child Tax Credit reduced child poverty by 40%. Therefore, the renewal of the same has the potential to reduce child poverty in the future further. Not to forget that inflation is increasing. Withdrawing the Child Tax Credit at this time is creating a huge financial burden, especially for families living at the bottom of the poverty line.
Even though inflation is used as an excuse not to extend the Child Tax Credit, it should actually be a reason for extending it further. It will be interesting to see whether the push by the democrats results in Child tax credit June Update or not. It is the need of the hour for many families. However, no decision has been regarding it till now. We will update this section with new information once the decision is made for the same.