The IRS has functioned as a tool for welfare programs for years, usurping authority from Congress.
This issue has been in the public spotlight due to controversial bills like Obamacare. These are bills that create more refunds than money paid in, effectively creating a redistribution of tax funds.
Congress has again added to the list of refundable credits with a provision of the American Rescue Plan Act. Under the new law we now have a substantially expanded Child Tax Credit. The credit is broken into two elements.
The first element provides that households with children under age 6 may claim up to $3,600 per child as a credit. The second element applies for children ages 6 to 17. In that case, the credit is $3,000 per child. The new rules phase out the additional credit amount for single individuals with Adjusted Gross Income under $75,000, $112,500 for heads of households, and $150,000 for married couples filing jointly.
The credit is now fully refundable, but only for tax year 2021. Under the current rules, one-half of the credit will be mailed to taxpayers in monthly checks beginning in July 2021, continuing through December 2021. The other half may be claimed as a credit against taxes owed on the 2021 tax return (to be filed in April 2022).
Read the FULL ARTICLE on National Review: The New Child Tax Credit: Welfare Administered by the IRS | National Review
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