Lawmakers propose restoring monthly Child Tax Credit payments and adding a $2,000 credit for newborns.
According to RollCall, Reps. Rosa DeLauro (D-CT), Suzan DelBene (D-WA), and Ritchie Torres (D-NY) recently presented legislation that would restore the monthly payments and increase eligibility for the credits while also providing a $2,000 ‘baby bonus’ for births.
Nowadays, the Child Tax Credit is limited to $2,000 per child per year and can only be claimed as a lump sum when filing taxes, rather than in monthly installments.
What Is Included in the New Bill?
Under the current plan, families would get $3,600 every year, or $300 every month, for each kid under the age of 6, and $3,000 every year, or $250 every month, for every child aged 6 to 17, the same framework that was adopted in 2021.
If the ‘baby bonus’ is enacted, parents who have a child born in January will get up to $5,300 in credits throughout the kid’s first year, with $2,000 in January and $300 in each of the next 11 months.
Regardless of the month a kid is born, the amount of their lifetime credits will stay the same because payments will continue until they are 18 years old.
Thus, even if a child was born in December and the family only gets $2,000 in their first year of payments, they would still get the same sum of money over the course of their lifetime as a family that’s child is born in January.
Expanded Empire State Child Credit
Gov. Kathy Hochul stated the Empire State Child Credit will be raised to include children under the age of four as part of the state’s Fiscal Year 2024 budget.
Eligibility for Empire State Child Credit: Full-year New York residents, married to a full-year resident, with a qualifying child and meeting specified conditions:
- On federal tax forms 1040/1040NR, claim the federal child tax credit, supplementary child tax credit, or credit for other dependents.
- Income limits in New York for tax filers: $75,000 or less for single, head of household, or qualifying surviving spouse; $110,000 or less for married filing jointly; $55,000 or less for married filing separately.
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Source: SILIVE Via MSN