Tag: Child Tax Credit

Congress Reaches Deal to Increase Child Tax Credit, Negotiate Tax Treaty with Taiwan

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Family Learning

Congressional negotiators from the Senate and House of Representatives announced a deal on Tuesday to increase the child tax credit and negotiate a new bilateral tax treaty with Taiwan, among other matters.

The child tax credit was first enacted in 1997 to provide parents with greater funds to care for children under the age of 17 and was expanded in 2021 under the American Rescue Plan Act, though that expansion expired in 2022 and has not been reauthorized. The new deal — known as the “The Tax Relief for American Families and Workers Act of 2024” — reached between Democrats and Republicans in Congress will change the way the tax credit is calculated, increase the credit every year until 2025 and index it to inflation, according to a technical summary of the plan published by the House Ways and Means Committee.

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New IRS Guidelines for Electric Car Tax Credit ‘Recipe for Fraud,’ Tax Watchdog Warns

Just the News
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New Internal Revenue Service (IRS) guidelines for the federal electric vehicle (EV) tax credit are a “recipe for fraud,” warns the head of the Tax Foundation.

Consumers will now be able to automatically claim the tax credit at the point of sale on new or used EV purchases, rather than wait to claim it on their tax return, according to the latest Treasury Department guidance.

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IRS Destroyed 30 Million Tax Filing Documents, Lawmakers Demand Answers

The Center Square
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The Internal Revenue Service has been under fire for delays and millions of backlogged returns, but now lawmakers are raising the alarm after the federal agency “destroyed” millions of Americans’ tax documents.

Republicans on the House Oversight Committee sent a letter to IRS Commissioner Charles Rettig this week asking for answers about why these records were destroyed.

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Connecticut Child Tax Credit Application Period Opens in June

The Center Square

Families in Connecticut can begin applying for the Child Tax Rebate in June, Gov. Ned Lamont said.

The governor announced Thursday afternoon that families who are eligible can earn up to $250 per child through the 2022 Connecticut Child Tax Rebate. The application period opens June 1. Earlier this month, the tax break was signed into law. The rebate is contained in the fiscal year 2023 budget adjustment bill, which includes more than $600 million in tax cuts.

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Pressure from Lawmakers Grows As IRS Begins New Tax Season with ‘Continued Confusion’

The Center Square

Lawmakers on both sides of the aisle are pressuring the Internal Revenue Service over ongoing problems and unaddressed issues from last year’s filing season even as this year’s season is in full swing.

A bipartisan group of more than 100 lawmakers from the U.S. House and Senate sent a letter to the IRS raising concerns about “continued confusion” and “numerous problems” with the agency.

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Commentary: The GOP Can Reclaim the Child Tax Credit – And Use it to Win in 2022

RealClearWire
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As part of his Contract with America, House Speaker (and my former boss) Newt Gingrich helped first introduce the Child Tax Credit (CTC), passing it in 1997. Originally the idea of President Ronald Reagan, the CTC was founded on the conservative principles that raising children is God’s work, and parents should not be punished or held back for choosing family in a country that is always moving forward. President Trump continued this tradition by doubling the CTC in 2017. As Speaker Gingrich said during a 1995 speech, “We believe that parents ought to have the first claim on money to take care of their children rather than bureaucrats.”

Democrats reformed the CTC in 2021, as part of their wildly overdone American Rescue Plan. They’ve sought to continue their changes to the CTC in the even-more-overdone Build Back Better Act (BBB), a hulking Frankenstein of bad Democratic ideas. But the new version of the CTC may be an exception. It continues fulfilling Speaker Gingrich’s contract, empowering families to work and earn, and to raise their children with their own values. The spirit and core of that policy is even better reflected by flat, poverty-busting monthly disbursement of the credit. It’s the only salvageable ship in the sinking BBB fleet.

The CTC – in its 2021 form – does not stray too far from the $500-per-child tax cut that was initially passed in 1997. The payments, which provided eligible families with up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child aged 6 to 17, stimulated regional economies, protected families from rising costs, provided direct cash relief, and removed bureaucratic hurdles.

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Child Tax Credit Is Driving Americans Toward Entrepreneurship, Has Little Effect on Workforce

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A new study suggests that the child tax credit (CTC) is not reducing overall employment nationwide but is driving some low and middle-income parents away from their private sector jobs and toward self-employment.

The study, led by researchers at the Washington University in St. Louis’ Social Policy Institute and Appalachian State University and provided exclusively to the Daily Caller News Foundation, found that the monthly payments had barely any impact on the job market whatsoever, contradicting concerns that the tax credits would worsen the labor shortage. It also found that adults were far less likely to list child care as a reason for unemployment, with the share of people saying so dropping from 26% to below 20% once they began receiving the payments.

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Democrats Push to Make Child Tax Credit Permanent Despite a Lack of Taxpayer Support

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Democrats are pushing to permanently expand monthly child tax credits in their spending package, but a new poll shows that just 35% of Americans support extending the payments beyond July 2022.

The expanded payments began in July as a part of President Joe Biden’s coronavirus relief package signed in March. While the Politico/Morning Consult poll released Wednesday found that 50% of Americans supported the increase in payments, 12 points higher than those who opposed them, 52% of Americans said the payments should not be extended beyond their set expiration.

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Study: 94 Percent of Parents Say Child Tax Credit Payments Allow, Motivate Them to Work More

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The vast majority of parents receiving monthly child tax credit payments say that they plan to keep working or even increase their hours as a result of them, a study released Thursday shows.

Ninety-four percent of parents said that the payments, which began in July, allowed them to work the same amount or more, a joint study from the Washington University in St. Louis, UNC-Greensboro, Appalachian State, the Urban Institute and Humanity Forward shows. Just 6.4% receiving the payments said they would work less or change jobs, and of those a majority were parents with infants or toddlers.

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Monthly Child Tax Credit Payments: Who’s Eligible, and How Much Could They Get?

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Millions of American families will begin to receive monthly cash payments Thursday as part of the $1.9 trillion coronavirus relief package that President Joe Biden signed into law in March.

The payments are an expansion of the Child Tax Credit, and will continue for a year before requiring congressional renewal. As many as 90% of American families are eligible to receive hundreds of dollars a month for each child they have, and some experts believe that the policy could ultimately cut child poverty in half.

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Most Americans with Children to Receive Monthly Federal Payments Starting in July

The Center Square
Man with two children

Millions of American families will receive hundreds of dollars in regular federal payments beginning next month, the Internal Revenue Service said Monday.

The IRS announced July 15 as the start date for monthly child tax credit payments that would affect the vast majority of Americans with children.

“Eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above,” the IRS said in a statement.

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