New legislation that would boost the state Child Tax Credit (CTC) has been filed by state lawmakers in New York.
The measure under consideration would establish the New York State Working Families Tax Credit and raise the state’s CTC program from $500 to $1,500 per kid.
New York Child Tax Credit
The plan would also increase eligibility to include families with children under four years old and those with the lowest incomes.
If the legislation is approved, New York households will get automatic payments every three months to help with the high current expenses of electricity, food, and clothes.
And statistics indicate that New York’s poverty rate is growing. According to a study this week from the office of state comptroller Tom DiNapoli, 2.7 million New Yorkers, or about 14% of the state’s population, live in poverty. The average poverty rate in the country is 12.8%.
Individual taxpayers with an adjusted gross income of under $25,000 or joint filers with an adjusted gross income of under $50,000 would be qualified for the proposed $1,500 tax credit. The credit would begin with tax returns for 2023 submitted in 2024.
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Enhanced CTC
The state Department of Taxation and Finance would use yearly income tax returns to determine eligibility. According to the research, the proposed expanded Child Tax Credit would cost $4 billion, or an additional $2 billion.
The most recent law that offered stimulus compensation for financial losses associated with COVID-19 was the American Rescue Plan Act. Most people and dependents received checks worth $1,400 thanks to the Act, which also increased the Child Tax Credit to a maximum of $3,600 per child.
Congressman Schiff is asking Democratic lawmakers to propose this enhanced Child Tax Credit. The American Rescue Plan Act’s tax credit enhancement was set to expire at the end of December 2021, but Schiff thinks it should be extended permanently.
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