CHARLESTON, WV (WOWK) — Since July 15th, billions of dollars have been going out to U.S. parents under the expanded child tax credit made possible by the American Rescue Plan, and now some want to make it permanent.
The money is being deposited in monthly increments by direct deposit as opposed to one lump sum after taxes.
The child tax credit was increased to provide up to $300 per month per child under age 6 and up to $250 per month per child ages 6 to 17 from July to December of 2021.
If you are still awaiting payments, the IRS has created a website that simplifies the claim process.
Everyone with a child under the age of 17 qualifies for the credit, whether they pay taxes or not.
The threshold to receive the full credit is as follows; single filer with children $75,000 of income, head of household up to $112,500, married/filing jointly up to $150,000.
After a limit of $400,000, the credit is phased out.
“This is really generational legislation, certainly it will impact children today but it will impact their future, and it will impact their children’s children’s future were it to become permanent,” said Jeff Allen with the West Virginia Council of Churches.
“This is really generational legislation, certainly it will impact children today but it will impact their future, and it will impact their children’s children’s”
Jeff Allen, WV Council of churches
For West Virginian families, this extra money has been a lifesaver.
“I heard from one family that their toilet was broken and causing their water bill to be through the roof and then they got this and they were like ‘oh we can get the toilet fixed'” said Jim McKay with Prevent Child Abuse WV.
McKay sats there is a misconception that the money will need to be paid back or that it has to be spent on childcare only.
Both McKay and Allen want to see the tax credit become permanent, but Senator Manchin (D-West Virginia) has been quoted saying he’d like to see parents show proof of work to receive the credit.
In a state like West Virginia, with many grandparents raising their grandchildren, supporters of making the expanded child tax credit permanent say that’s not possible.
“There are people in West Virginia who may not get a W-2 but you better believe that they’re busting their butts because they’re doing informal child care, they’re doing house cleaning, they’re doing foraging, they’re taking care of elderly parents or elderly relatives because that’s what we do in West Virginia,” said Shana Phares with TSG Consulting.
The permanency of the child tax credit now hangs on a reconciliation resolution which is currently being debated in congress.