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Millions of American families with children are set to receive the last of six monthly child tax credit advance payments on December 15.
Yet a few days earlier, on December 3, the U.S. government is on the verge of shutting down unless Congress approves more funds to keep it open until the end of the year.
Additionally, the government may default in mid-December if the federal debt ceiling is not raised.
Here's what these events may mean for the last monthly child tax credit payment.
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Clean Closed Government
Democrats must spend more funds to avoid a government shutdown by December 3.
If that doesn't happen and the federal government is indeed shut down, the last batch of child tax credit checks should still come out.
It 's because during a government shutdown, some programs and services continue. These are mostly essential services and mandatory spending programs, according to the Committee for a Responsible Federal Budget. Included are Social Security and Medicare checks, although some other services such as issuing cards or checking benefits may expire.
In addition, work on the safety planAmerican is included in the list of significant agency activities in the Plan "for the IRS shutdown , which the Office of Management and Budget keeps for the whole government. This should include the last batch of checks, although other services via the IRS may be suspended.
Default on Debt
Another outstanding issue is that the government could soon run out of money if the federal debt ceiling is not raised.
Previously, the US Treasury Department said it would run out of money on December 3, which could jeopardize payment final child tax credit. But, in "a November 16 letter to Congress, Treasury Secretary Janet Yellen said the department can continue to fund "the government until December 15.
This is the same day that the last child tax credit check is due to the families.
"I guess they will make the payment - don 't not doing so would be very disturbing to many families, "said Elaine Maag, senior research associate at the Urban-Brookings Tax Policy Center.
Of course, there may be other issues with the child tax credit in the future.
Although Democrats have included an extension of One year and a permanent full refund of the child tax credit in their Build Back Better plan has not been passed in the Senate yet.
The House on Friday approved a roughly $ 1.75 trillion version of the plan, sending it back to the Senate. There, the 50 Democratic Senators must passnt.
The US bailout in March expanded the existing child tax credit, adding monthly advance payments and increasing the benefit from $ 2,000 to $ 3,000 with a bonus of 600 $ for children under 6 for tax year 2021.
The first half of the credit is paid in monthly direct deposits until December of $ 300 for children of under 6 and $ 250 for those aged 6 to 17. The se Half will come when families file their 2021 tax returns next year.
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