President Joe Biden wants to extend the child tax credit expansion for four years and hopes to make the payments permanent, according to senior administration officials.
"The goal of this is not just to be one year," a senior administration official said during a press call, USA Today reported Thursday. "I think that people have somewhat different legislative strategies but I think that every advocate has the same goal: that we want this to be ultimately permanent. There's no disagreement on that the ultimate goal is for this to go on indefinitely."
The tax credit is part of the American Rescue Plan COVID-19 relief package that was signed into law in March. It was to expire in December, but officials said Wednesday that Biden's initial plan is to extend the credit for four years in hopes of making it permanent.
Biden is scheduled to speak Thursday about the child tax credit when he will "explain in clear language" how it works, reports CNN, quoting an administration official.
According to the White House, starting on Thursday, American families should expect to see the payments on the 15th of each month and will receive a tax break when they file returns next year.
Most families will get the credit automatically if they filed tax returns in 2019 or 2020 claiming the child tax credit. Families filing taxes electronically should see the payments in their bank accounts, while families who file taxes by mail should expect paper checks in "several days," according to the administration.
Other families who have not filed recent tax returns or used a non-filer tool last year to get stimulus checks can use an IRS portal to register for the tax credit.
"For the first time in our nation's history, American working families are receiving monthly tax relief payments to help pay for essentials like doctor's visits, school supplies, and groceries," Treasury Secretary Janet Yellen said in a statement Wednesday. "This major middle-class tax relief and step in reducing child poverty is a remarkable economic victory for America, and also a moral one."
Making the credit a permanent fixture was one of five main points coming out out of Wednesday's Senate Budget Committee meeting, reports USA Today. The Internal Revenue Service is to begin distributing tax credit payments on Thursday, and monthly payments are scheduled through the end of the year.
According to IRS estimates, approximately $15 billion is to be distributed to about 39 million families and to 65 million children. The expanded credit adds another $1,000 to the existing $2,000 Child Tax Credit eligible families get for each child ages 6 through 17, or another $1,600 for each child aged 5 or younger.
To claim the credit, single parents filing as head of household must earn $112,500 or less, or $75,000 less if the parent is not the head of household. Married couples filing a joint return may claim the credit if their combined income totals $150,000 or less a year.
This article posted on: www.newsmax.com