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Information for Parents Regarding the Termination of the Monthly Child Credit Payments

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WACO, Texas (KTRK) — Thousands of families who received a monthly payment from the IRS as part of the enhanced child tax credit are facing their first month without support since July.

Low and middle-income parents could get up to $3,000 for each child aged 6 to 17 and $3,600 for each child under the age of 6 as part of the Coronavirus assistance package announced in early 2021.

Last month, those payments came to an end.

“When you file your tax returns, you can still claim the remainder of the previous year’s credit,” explains economist Dr. Ray Perryman.

The elimination of the monthly child tax credit payments, according to Dr. Perryman, will affect millions of families.

“Unfortunately, that excludes a lot of the poorest families because you have to be able to file a tax return to qualify,” Dr. Perryman explains.

READ ALSO This Year, the Child Care Tax Credit Doubles, Allowing You to Claim Up to $16,000 in Benefits.

With inflation on the rise, Dr. Perryman predicts that families that rely on monthly payments may face significant difficulty this year.

“It would necessitate some restriction on their consumption capability.” And, of course, it will wreak havoc on the lives of many people, including children. “I’ve heard estimates of as many as ten million children falling back into poverty,” Dr. Perryman says.

Information for Parents Regarding the Termination of the Monthly Child Credit Payments
Information for Parents Regarding the Termination of the Monthly Child Credit Payments

Looking ahead, According to Perryman, this might have an impact on jobs.

According to Dr. Perryman, “estimates are that it could harm several hundred thousand jobs over the next year unless some remedial action is taken.”

READ ALSOThis Year, the Child Care Tax Credit Doubles, Allowing You to Claim Up to $16,000 in Benefits.

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