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Unemployment benefits and child tax credits 2021

Unemployment benefits and child tax credits 2021

Unemployment benefits could be extended retroactively through February. Meanwhile, the IRS doles out the child tax credit.

Pandemic unemployment benefits were a federal relief that lasted more than a year and came to an end on September 6, leaving 7.5 million Americans without this income.

As a result, Democratic Congresswoman Alexandria Ocasio-Cortez, better known simply as AOC, has launched a proposal to extend the benefits retroactively from September 6 to February 1.

The proposal has caused a great division in Congress, as it is supported by Democrats, while Republicans claim that extending benefits is no longer necessary. So far, President Biden has not commented on the issue.

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Child Tax Credits – All About It

While Congress decides the future of unemployment benefits, the IRS continues to hand out other relief, such as monthly advance payments and increases to the Child Tax Credit (CTC).

This increase is only valid for one year as it is considered an additional help against the coronavirus. Families with dependents under age 6 may be eligible for a payment of up to $3,600 ($300 per month), while those with children between the ages of 6 and 17 are eligible for a payment of $3,000 ($250 per month).

Monthly payments are issued automatically on the 15th of each month, beginning in July and ending in December. You will need to claim the remainder of the credit on your 2021 tax return for a lump sum refund.

For the exact amount and record of your payments, visit the IRS Child Tax Credit Update Portal.

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