Child Tax Credit payment ends, faces uncertain future for 2022

SALISBURY, Md. – The Child Tax Credit program for 2021 has ended, but that doesn’t mean if you’re enrolled you won’t be able to get all the money for this year.

The IRS will be sending out a 6419 letter to all households who received half of the money they were due as part of the program, asking them to declare their payments in order to receive the second half in a lump sum this April.

For households who make under $150,000, the payments will be completely tax-free, but those who may have qualified in 2020 but are over that threshold in 2021 may end up owing.

“If their income went up in 21 from 20 which is possible considering the economy is improved, there is a potential depending on the amount of money they now earn above that 150,000 that they would have to owe that back,” said TGM Group CPA Mark Welsh.

The current plan allowed for between 3,000 and 3,600 per child per household, with reports from the CBO suggesting the program affected 9/10 American children and helped to decrease child poverty by 40 percent.

The tax credit also faces an uncertain future with being extended, it was part of the Build Back Better plan, but that now appears at a standstill with Senator Joe Manchin saying he won’t vote for the bill with its inclusion. If the deal is not extended, it will revert to the old child tax system with far fewer dollars and much lower thresholds to qualify.