New Child Tax Credit Plan Would Restore, Increase Monthly Payments for Parents
Monthly enhanced Child Tax Credits that parents received during the second half of 2021 would resume, and in some cases increase, under a plan being put forward by Republican Senator Mitt Romney.
The American Rescue Plan passed by congress and President Biden last year switched the benefit from an annual payout/credit received while filing taxes to a monthly benefit. However, that plan expired at the end of 2021.
The Utah Republican has unveiled the Family Security Act that would not only return the Child Tax Credit to a monthly cash benefit, but would also increase the payout for parents of younger children.
Under Romneys plan, parents would see the monthly payment increase from $300 to $350 for each child under the age of six. The credit of $250 for children aged 6-17 would return unchanged. There is also an added benefit for expecting parents, eligibility for Child Tax Credit payments beginning four months before the child is born.
Other highlights of the plan include, according to Romney's office:
- A simplification of the Earned Income Tax Credit (EITC) that would not vary based on the number of dependants
- Elimination of marriage penalties
As CBS News reports, parents who had been receiving the monthly cash payments can receive the remainder of their 2021 credit when filing their taxes:
Families who received monthly payments in the second half of last year can still get up to $1,800 for children younger than 6 and $1,500 for children ages 6 to 17 as part of their refund. Those who did not receive monthly payments can receive the full amount – up to $3,600 for those under 6 or $3,000 for kids 6-17. Eligible families who had a baby last year can also receive the money in their refund.
Romney says his Family Security Act would streamline the program, while also cutting the national childhood poverty rate by up to one-third.