Child Tax Credit
What is the Child Tax Credit payment date in November 2021?
The fifth installment of the Child Tax Credit is just around the corner and it is falling on the same day as most of the other payments.
The Child Tax Credit has been sent out since July and it has been very popular. Studies have proven its positive effects on recipients mental health, lifting millions out of poverty, and, surprising for some, an extra willingness to find work.
Four payments have been sent so far; July, August, September and October with the next due in just under a week on November 15. The opt-out date is on November 1, so if you think it may be beneficial for you to opt out, then you have missed the deadline. It is still possible to opt-out of the final monthly payment, due in just over a month. This can be done by using the IRS portal.
While the monthly payments for 2021 and drawing to a close, there is a high chance they will still be in place in their current form for at least 2022, provided Congress passes the reconciliation bill.
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What is happening in 2022?
If the reconciliation bill is passed in its current state, then monthly payments will continue in 2022. Alongside this, the last six months of the 2021 payment will arrive as a lump sum once you have filed your 2021 tax return in April.
For people who opted out, don't worry. If you are still eligible to receive the credit, come the end of the tax year, you will receive all the payments you missed as a lump sump. For example, If you received the July and August 2021 payments but none after for one 5 year-old child, you would receive $3,000 after you have filed the tax return.
However, the reconciliation bill is still being negotiated in Congress, so it is likely there will still be changes before it is passed. It was supposed to cost $3.5 trillion, but moderate democrats have successfully limited the bill to around $1.75 trillion, a move the progressive wing of the party say is far too small.
The Child Tax Credit was to be expanded for five years until 2025, but now the end of 2022 will be the deadline. This measure was to coax the vote of Senator Joe Manchin, a 'moderate' who has been determined to whittle away the president's agenda. His vote is yet to be forthcoming, leading to other parts of the bill being excluded, such as limits on pharmaceutical drug prices, as well as meaningful climate provisions.