Democrats get good news from IRS
By Naomi Jagoda - 04/14/21 05:24 PM EDT
Democrats are welcoming the IRS’s announcement that it’s on track to start making monthly payments of the child tax credit in July, a step that could help their effort to make the expansion of the credit in President Biden’s relief law permanent.
Biden’s coronavirus relief law, enacted in March, directs the IRS to issue advance payments of the credit on a periodic basis, so that families receive money in installments throughout the year rather than in a single payment after they file their tax returns.
IRS Commissioner Charles Rettig said at a Senate Finance Committee hearing Tuesday that he expects the agency to be able to start making payments in July, as the relief law prescribes, and on a monthly basis, as Democrats had hoped.
excerpt:
Biden’s relief package expands the tax credit in several ways for 2021. In addition to directing the IRS to make advance payments of the credit in the second half of this year, the law increases the credit amount from $2,000 to $3,600 for children under age 6 and to $3,000 for older children.
If the IRS is able to make monthly payments starting in July, families could receive half of the child tax credit that they are entitled to for 2021 through advance payments, in amounts of $300 per month for children under 6, and $250 per month for older children. They would receive the other half of the credit amount for which they’re eligible when they file their 2021 tax returns next year.
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https://thehill.com/policy/finance/548299-democrats-get-good-news-from-irs
