The expanded child tax credit has expired after Congress did not renew it before the end of 2021.
The tax credit was expanded over the summer, increasing the amount of money families could claim per child and broke down the lump sum payment into monthly checks. The tax credit for children under the age of 6, for example, increased from $2,000 per child in 2020 to $3,600 per child.
The expansion expired at the end of 2021. The final monthly checks were sent out in mid-December.
“I think the most important thing is just making sure people realize it's not going away,” said Joe Wilson III, co-founder of Olson & Wilson Private Capital. “It's just cutting back.”
The tax credit will now revert to what it was before the expansion and monthly payments will end, which Wilson said will create a big impact on families already facing rising costs.
“The reality is, what's coming in can only go so far,” he said. “You got to focus on the most important things. You got to focus on the roof over your head and the food in your stomach. And because rent is going up and because food prices are going up, that's going to consume more and more of your budget.”
Wilson said it will force families to build new budgets this year and re-examine how they budget.
“It might mean going back to the grandma, grandpa days of how they budgeted,” Wilson said. “You take $40 out for eating out that goes in an envelope. When it's gone, it's gone.”
Research from the Center on Poverty & Social Policy at Columbia University found that the expanded credit kept millions of children out of poverty.
Wilson said those in a position to give back should consider doing so.
“Everybody's going to need a little bit of help right now,” he said. “As Cincinnatians, this is what we do best. We rally to the cause. This is a time to give and give abundantly.”