Lawmakers in New York looking to get more cash back into the pockets of residents by restructuring the Child Tax Credit. Backers of the newly proposed model which was unveiled on Thursday, say that this restructure could decrease child poverty by 19% in New York.
The Details
This measure will allow the lowest income qualifiers to receive the highest credits. According to Senator Andrew Gounardes, the new bill will increase the maximum credit for families to $1,500 per child and provide a minimum of $500 credit per child regardless of income. It would also eliminate the cap on the number of children eligible to receive the credit and they will be paid out quarterly instead of the previous method which was a lump sum.
Families with three children, on average, will receive $1,090 more than the current system, if the new one is put into place. Those without children who qualify for the state EITC (Earned Income Tax Credit) will be unaffected and continue to receive that benefit.
“We’re proposing to take steps here in New York to replicate the incredibly successful expanded child tax credit and, in the course of doing so, expand eligibility, expand the credit threshold and help make sure that we drive down child poverty,” Gounardes said.
Lawmakers are pushing to get this renewed by the end of the year however, their efforts seemed to have stalled.
Wrap Up
If Lawmakers can push this renewal through, this would be a massive help for families across the country, especially those in the lower income brackets. Especially with the Christmas season right around the corner. If you ever need assistance with the Child Tax Credit, get in touch with a trusted financial advisor for guidance.