As end of child tax credit payments approaches, Nevada Democrats push for extension | Congressman Steven Horsford
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As end of child tax credit payments approaches, Nevada Democrats push for extension

December 7, 2021

Every month since July, Las Vegas resident Lori Muñoz receives around $300 for her daughter as part of the federal child tax credit. She spends it on school clothes, school lunches and other expenses that may come up.

"It's just been a huge help in that area," Muñoz said. "You always think, ‘oh it's some extra money.' It's never extra money. … Kids always need, there's always something that needs to be bought."

The child tax credit, which was expanded in 2021 through President Joe Biden's American Rescue Plan, is estimated to cut child poverty by 40% next year if it is extended into 2022, according to the Center on Budget and Policy Priorities.

As part of the rescue plan, the credit was raised to $3,600 per child under the age of 6 and $3,000 for each child between 6 and 17 years old to be claimed on a family's 2021 federal income tax return. Additionally, the government made 50% of the credit amount available to families via advance monthly payments beginning July 15 with the final payment scheduled to be released Dec. 15. The credit could be extended into 2022 through Biden's Build Back Better Act, which has passed the U.S. House and is awaiting a vote in the U.S. Senate.

The legislation was backed in the House by Nevada's three Democratic representatives, Dina Titus, Steven Horsford and Susie Lee; Republican Mark Amodei opposed the bill. The state's Democratic U.S. senators, Catherine Cortez Masto and Jacky Rosen, have expressed support for the act.

In Horsford's district, which covers most of northern Clark County, southern Lyon County and all of Esmeralda, Lincoln, Mineral, Nye and White Pine counties, 97% of households are eligible to receive the monthly tax credit, he said.

To qualify, families must make less than $75,000 for single filers, or $112,500 for head-of-household filers and $150,000 for married couples filing a joint return. They must have also filed a 2019 or 2020 tax return. According to the Internal Revenue Service, about 36 million families received a November monthly payment, totaling $15 billion.

The IRS has, for the most part, automatically sent the payments to qualifying families. But those who have not filed a 2019 or 2020 IRS return, or other nonfilers, must sign up for the program.

"This is not an entitlement program," Horsford said. "This is a tax provision, a federal tax law that gives a tax cut to (middle class) families with children."

Skeptics of the program worry the money does not always go to the right place and that many families are not taking advantage of the program.

Children who are not living with their parents don't get help, said Muñoz, who is a foster parent advocate. There are grandparents who are raising their grandchildren who do not receive the tax credit. The money instead goes to the parent, who may be having issues and is not taking care of the child.

"The money is not following the children in all cases," Muñoz said.

In the foster care community, that's also a big issue, she said. Foster parents will only receive the child tax credit for a foster child who has lived with them for at least six months.

Las Vegas resident Frankie Perez, a stay-at-home dad, is in the process of adopting his five foster children. He does not get the child tax credit for all of them, but he does for a few of them, he said.

"I had no idea how difficult and how expensive it is to raise children," Perez said. "This has been a life saver, really."

It helps pay for school clothes, Perez said, as it seems like often his children come home with holes in their pant legs from playing. He has spent the money on new pajamas for them, as well as for food.

"Even just being able to go out to eat," he said. "For seven to go out to eat, or even if I just take the kids, it's ridiculous."

It can be frustrating to figure out how to receive the credit, he said, but he encourages families to have patience when going onto the IRS website and learn more about how to apply.

While the one-year extension is waiting for approval in the Senate, Horsford said he was working to extend the child tax credit for longer.

"If families have more money in their pockets, our children will be better," he said. "To me, that's worth everything."

Issues:Economy