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To Democratic Senator Joe Manchin of West Virginia, Only working parents are eligible for the extended child tax credit.
“So I’ve been very, very direct on that,” the politician told Insider. “I think there should be a job requirement. That means you must file a 1099 “ (forms that are usually submitted by independent and freelance contractors). Although a spokesman for the senator later explained that what Manchin meant is that the families submit a W-2 form to show that they are earning enough to pay taxes.
The measure of presenting proof of taxable income would exclude the poorest familiesThey do not have enough income to file federal income taxes to receive checks under the expanded child tax credit. Previously, most families, even those in which the parents had no income the previous year, were eligible to receive monthly checks.
According to experts, allowing families to receive aid regardless of whether they owe taxes or not, would have great socioeconomic benefits, since Research has revealed that the child poverty rate has dropped by a third since July.
For tax specialists, the Manchin requirement could mean a new obstacle that would also affect middle-income familiesSince workers such as Uber drivers or freelancers who must submit a different tax form, would not be eligible.
Elaine Maag, a tax expert at the Urban Institute, told Insider that a large number of people would be affected, “It will not be only very low-income families that will not be able to meet this test.”.
The expanded credit expired in December 2021, and Democrats in Congress continue to debate how to do it amid other negotiations on the budget requested by Biden.
However, Manchin halted the $ 2 trillion Build Back Better plan in late December, which included resources for an extension of the child tax credit by 2022, but the senator has been steadfast in his position that the federal government issue monthly checks to families without conditions.
Talks about reactivating the legislation have stalled, “There is no negotiation at the moment”Manchin told the media on Tuesday.
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