Local mom reflects on elimination of COVID-19 child tax credit
PEORIA (25 NEWS) - Starting Saturday, more than 30 million parents across the U.S. will lose out on the advanced child tax credit.
In July, eligible parents were paid up to $300 for kids under five years old and up to $250 for kids ages six to 17.
Peoria parent Jalyssa Brown, who was given $300 a month for her four-year-old, says for her and others with kids, that tax credit is a difference maker.
“It was just that relief that I know I’m getting this extra money – once a month – that can help me. Whether my child needs this, or we need help around the house, Brown said”
Brown switched jobs last year, and that came with a pay boost - so she says luckily for her and little Junior, the tax money isn’t make or break.
But she adds that isn’t the case for some other parents she knows in the area.
“For me, just having only one child, it didn’t affect me as much. But for people who have multiple kids, this really, really helped them out,” Brown said.
These funds were introduced in July 2021 through President Biden’s American Rescue Plan. Starting in July, the IRS would advance up to half of the following year’s tax return.
Democrats had the goal of expanding the monthly returns into 2022, but Congress didn’t pass the extension proposal.
Mark Steber, chief tax information officer for Jackson Hewitt Tax Service, says now, parents have work to do to get the most out of that other half.
“Dependents on your tax return have always been in important, but in 2021, they are quantum important in terms of the amount of credit, the amount of tax benefit, and the size of your refund,” Steber said.
The good news, Steber says, is parents can still get a lot back in their 2021 tax return - especially if certain family factors come into play.
“If you have new children, if you had a shared custody agreement and it was your year, those are not even folded in and you could get an entire new amount of credit,” Steber said.
For now though, Brown says its an adjustment for her and other local parents.
“I want the best for (Junior). I want the best schools for him. So I’m doing everything I can to make sure he has those things ready for him,” Brown said.
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