What families need to know about CTC in 2022

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By Ashley Burnside

Temporary extensions of the Child Tax Credit (CTC) have dramatically reduced the proportion of children in poverty, especially for black and Latino children. The expansions have also reduced rates of food insecurity, helped families obtain basic necessities, and reduced financial stress for parents. But since the CTC’s monthly payments have ended, at least for now, many feel uncertain. Here’s what families need to know about CTC in 2022:

Families with children can still get the rest of their 2021 credits, but only if they file a 2021 tax return. Families who received monthly CTC payments in 2021 received the equivalent of six months of payments (July to December). To get the remaining half of the credit they are entitled to, they have to file a tax return this year. This is true even if a parent earned little or no income in the past year – they are still eligible for the CTC and must file an income tax return to get it. The CTC Non-Filer Portal is closed, so all parents must file a 2021 income tax return. Parents who opted out of receiving monthly payments last year using the IRS website will be required to file a 2021 income tax return. tax return to get their full CTC 2021 payment. Parents must also file their income tax return to claim new babies born in 2021 or any other child they did not receive advance payments for in 2021. Even if a baby was born as late as December 2021, that baby would still be eligible. for full payment of CTC $ 3,600 when their family files a 2021 tax return.

Families are eligible for remaining child tax credit payments in 2022

If families receive a letter from the IRS stating how much they received from the CTC ahead of time, they should keep the letter because it will contain important information for completing their 2022 return. The IRS will send Letter 6419 to all families who received CTC advance payments indicating how many monthly CTC payments they received and how many children in the household were eligible. The IRS will send the letter to the address it has on file for the family. Families can also connect to the IRS CTC Update portal to find this information. If the total number of CTC payments the parent records on the 2021 tax return does not match what the IRS has on file, it may delay their reimbursement.

Parents or guardians can receive the portion of CTC 2021 they did not receive by completing the IRS tax form 1040 or 1040-SR. There are several free ways to file taxes online or receive in-person support from community partners when filing a return. If they received an IRS 6419 letter, they should bring it with them if they receive assistance in person. Some tax assistance options include:

The CTC payment that families will receive when they file their income tax return can be reduced to pay off other taxes or debts they owe. When a caregiver files a 2021 income tax return, the CTC lump sum payment will be subject to possible tax offsets, meaning that a refund could be reduced to pay for tax debts or other federal debts or states that the filer owes, such as overdue child support payments. . (The CTC’s monthly advance payments for 2021 have been shielded from such a reduction.) Tax refunds can also be intercepted to pay off student loans; However, since the Biden administration extended the federal moratorium on student loan repayments until May 1, 2022, that debt shouldn’t be a problem for most people just yet. The tax refund will also not be protected against garnishment by private collection agents. You can read more about it at the IRS website.

Obtaining CTC payments will not affect families’ immigration status or their eligibility for other programs that help them meet their basic needs. If families receive the CTC lump sum payment on their 2021 tax return, it will not affect their eligibility for other programs like the Supplemental Nutrition Assistance Program (SNAP), Medicaid or Supplementary Security Income (SSI). Receiving CTC payments will also not impact their immigration status, ability to get a green card, or a family’s immigration plans. And receiving the CLC is not counted in determining whether an immigrant will be a “public office”. (You can read more about CTC eligibility for families with mixed immigration status here.)

Unless Build Back Better is successful, there will be no more monthly CTC payments. Despite the benefits the CTC expansions have had for families across the country, Congress has not extended the expansions beyond 2021. The Build Back Better (BBB) ​​law would extend the CTC expansions an additional year (until 2022) and would make the CTC permanent available to families with little or no income. This would disproportionately benefit black and Latin children. But Congress has yet to pass BBB legislation to put these changes into effect.

Caregivers should contact their members of Congress and tell them how CTC payments have helped their families, encouraging lawmakers to embrace the BBB to extend these essential payments. BBB legislation, as passed in the House of Representatives, also includes other key investments for parents, such as increased funding for childcare, paid family leave, housing and expanded access to facilities. home and community services. Congress must help families provide for their needs by passing the Build Back Better Act in 2022.


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