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Wednesday, January 19, 2022

Farewell, “find”: the expiration date of tax credits for children hit home

From JOHN RABY, FATIMA HUSSEIN and JOSH BOAK, Associated Press

CHARLESTON, WV — For the first time in six months, families will be left without a monthly deposit from the Child Tax Credit on Friday, a program that should have been part of President Joe Biden’s legacy but instead emerged as a flashpoint over who deserves government support.

Retired Andy Roberts of St. Albans, West Virginia, relied on checks to help raise his two young grandchildren, whom he and his wife adopted because the biological parents are recovering from drug addiction.

The Robertses don’t have $550 a month right now. The money helped pay for Girl Scouts, ballet and acting lessons, and children’s shoes, which Roberts noted were more expensive than adult shoes. The tax credit, he said, was “a godsend.”

“It will force you to tighten your belt if you have something to tighten,” Roberts said of the loss of payments.

The monthly tax credits were part of Biden’s $1.9 trillion coronavirus relief package, and the president has proposed extending them for another full year as part of a separate measure aimed at economic and social programs.

But Democratic Senator Joe Manchin, of Roberts’ home state of West Virginia, objected to the loan, fearing that the money would keep people away from work and that any additional federal spending would spur inflation, which has already reached nearly 40-40%. high year.

Last month, 305,000 West Virginia children took advantage of extended credit, according to the IRS.

Manchin’s opposition in the evenly divided Senate derailed Biden’s social spending package and caused extended tax credits that had been given out at the middle of each month to expire in January. This is cutting household income just as people are struggling with higher prices.

However, families have received only half of their 2021 loan each month, with the other half due upon tax filing in the coming months. The loan will be cut in 2022, with full payments only going to families who have earned enough income to pay taxes, a policy choice that will limit benefits to the poorest households. And loans for 2022 will only be made available after people file taxes early next year.

West Virginia families interviewed by the Associated Press highlighted how their grocery and gas bills have risen and said they will have to make do with less of a financial cushion than they did a few months ago.

World Nation News Deskhttps://www.worldnationnews.com
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