Biden to throw support behind temporary extension of expanded child tax credit - meaning lower tax bills or higher refunds for qualifying parents
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- The Wall Street Journal reported that Biden is open to extending the extended child tax credit for several years, but not permanently.
- See more stories on Insider's business page.
President Joe Biden told lawmakers that he will put forward a plan to temporarily extend the expanded child tax credit, but he stopped short of proposing to permanently install it, according to The Wall Street Journal.
An expanded child tax credit was included in the $1.9 trillion COVID-19 relief package signed in March and was made scalable across income thresholds. One study said it could nearly halve child poverty, as Insider previously reported.
As Tanza Loudenback from Insider's personal finance team wrote in an explainer on the child tax credit changes from 2020 to 2021. (Read it; it answers all of your questions):
"For 2021, the child tax credit increases to $3,600 per child under age 6 and $3,000 per child aged 6 to 17 (the 2020 credit edges out 17 year olds). It's also fully refundable - half of the credit can be sent to qualifying taxpayers in the form of direct cash payments from July to December 2021. The other half will be available when they file their tax return in 2022."
Insider estimated that up to 30 million American families could qualify for the child tax credit.
The IRS said that monthly child tax credit payments could begin by July 1.
According to the report, Biden met with the Congressional Hispanic Caucus on Tuesday and said that he is resistant to pushing for a permanent implementation of the tax credit due to potential pushback in the Senate.
During the meeting, Biden reportedly said he was open to extending the current tax credit, set to expire at the end of 2021, for several years.
In the heels of his proposed infrastructure and jobs bill, the Biden administration is working out the details for a possible $1 trillion plan focused on parental leave and child care, The Washington Post reported. The American Families Plan could include a provision to extend the expanded child tax credit to 2025, sources told The Post.
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