CTC increase and Stimulus 3.0 updates/predictions

[KittyKatAteTheTiger]

I was really hoping that the Stimulus 3.0 (or is it still 2.1?) would be sorted out by now. It could’ve changed the CTC from the current 2k to 3k and 3.6k for children up yrs old.

It also makes that 3/3.6k FULLY refundable! Right now only $1,400 of the $ 2000 is cash refundable.

Say I paid enough, or other credits covered my taxes due, my 3 kid’s CTC would be 6,000. If they had passed it before 2/15, we could’ve had 3k (10yrs)+3.6k (4yrs)+3.6k (1yrs)= $10,200!! that would’ve helped cover hours lost this year for sure.

It might be too late for PATHers to see a change apply to this tax season. Anyone think it may have a chance?

I mean they could possibly send a second tax return deposit if a later change results in a positive balance with the Dept of Treasury, but wouldn’t that be complicated as hell? What about those with temp accts like the taxprep debit cards and the advance accts? That could be the same headache as Stimulus 1.0!!!

[KittyKatAteTheTiger]

Yes Michael that’s what I saw as well,

I found a mention that half the Expanded CTC amount could be avail in July and the rest as 6 monthly payments, that’s if the expansion is passed of course. here’s the specifics:
https://www.msn.com/en-us/money/personalfinance/a-family-of-4-could-get-up-to-12-800-in-stimulus-payments-this-year/ar-BB1dzQXc?li=BBnbfcN&ocid=BDT3DHP

[Michael Smith]

Word on the street is the new credit will be applied as a monthly payments. It’s still being worked out but someone with a child 6 and under will get $300 per month per child. Any children over 6, will get $250 per month. Rumor is it could start in July. It is still up in the air about when and what and who.

[KittyKatAteTheTiger]

I’m pretty sure a fellow parent mentioned the first stimulus money affected her husband’s unemployment money but not the SNAP benefits for that month.

I was pretty sure that was sorted out and was not a problem for the Dec payments. I didn’t ever have a chance to ask her how things went afterwards.

[Kaylee]

Kitty,

No. It’s a tax credit, not income. So it wouldn’t count towards unemployment or other benefits where they factor in income.

[Kaylee]

The proposed new CTC is to be paid out on a monthly basis. And by tax time, if you still qualify, you don’t get additional credits. But if you no longer qualify, you have to pay that money back.

[KittyKatAteTheTiger]

I’ve read the push to divide that same credit into 12 monthly payments instead, but I feel that is way more likely to get rejected.

I’m all for helping families, but sometimes one lump sum works better for families that need to make large payments at once like back rent/mortgage payments or car repair. Also wouldn’t monthly payments mess with income calculations for those families relying on unemployment, Medicaid or Nutrition Assistance?

[Dsca]

Based off how the gov’t has handled all this I would expect it to go into effect next year should this get passed.

[Author]

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