Going into 2022, many people have questions regarding financial assistance and tax benefits.
One of which has to do with the Child Tax Credit. The IRS will be distributing the final sixth round payment from the Child Tax Credit. It could give some families up to $8,000 heading into 2022.
In order to get this payment, parents must make less than $125,000 and must have at least two children under the age of 13. This payment is meant to help families with kids through financial hardships.
Calculating the Child Tax Credit
It is part of the American Rescue Package, which was passed by Congress back in March as part of the $1.9 trillion relief program. So, what else goes into calculating this Child Tax Credit?
“The credit is calculated based on your income and a percentage of expenses that you incur for the care of the qualifying persons to enable you to go to work, look for work or attend school,” said the IRS, according to The Sun.
There’s more that goes into these payments, too. It’s beneficial for families that need to offset certain expenses, such as babysitters, daycare programs, or even transportation. The payment can also be made refundable. This is beneficial for someone who does not want to pay taxes on the money.
For those interested, they must fill out a 2411 form.
For many people, the Child Tax Credit is something they wish could potentially make permanent. Now, this extra help is coming to an end just as COVID-19 continues to surge. These payments first started in July, giving families hundreds of dollars that kept millions out of poverty.
According to The New York Times, this expiring aid could damage what was once a somewhat recovering economy and create new hardships for families near the poverty line. The Treasury Department dished out $80 billion over the course of six months, equalling about $300 per child.
Other Financial Assistance Ending in 2022
The Child Tax Credit isn’t the only financial assistance coming to an end. Several other pandemic aid programs are also expiring or have already expired. That includes the Paycheck Protection Program, which was put in place to support thousands of small businesses. This benefit ended in March.
The expanded unemployment benefits also ended in September.
According to ABC News, stimulus checks are also no longer coming to Americans in the new year. Guaranteed sick leave will also be a thing of the past. Also, student loan payments will start back up in May after a series of extensions were in place.
The federal aid programs in place for small businesses no longer accept applications.
There are still certain rental assistance and health care subsidies in place as of now.