WACO, Texas – Millions of families who received a monthly payment from the IRS through the expanded child tax credit are facing their first month since July without assistance.
As part of the Coronavirus relief package back in early 2021, low and middle-income parents could receive up to $3,000 for every child ages 6 to 17 and $3,600 for every child below the age of 6.
Those monthly payments stopped last month.
“You can still claim the remainder of the past year’s credit when you file your tax returns,” says economists Dr. Ray Perryman.
Dr. Perryman says millions of families are impacted by the ending of the monthly child tax credit payments.
“Unfortunately, that leaves out a lot of the lowest income families because you have to actually be able to file a tax return in order to receive,” says Dr. Perryman.
With inflation increasing, Dr. Perryman says families who depended on the monthly payments will face a lot of challenges this year.
“It would call for some restriction on their capacity to consume. And also, of course, cause a lot of hardships, probably put a lot of kids. I’ve heard estimates as many as 10 million kids back into poverty,” says Dr. Perryman.
Looking forward, Perryman says this can impact jobs.
“Estimates are that it could indeed impact several hundred thousand jobs over the course of the next year unless some some remedial action is taken,” says Dr. Perryman.