1 million more children could benefit from the child tax credit in the future
@lelia_milaya via Twenty20
If the Democrats’ proposed child tax credit changes persist, more children than ever will qualify for the benefit.
A major change in the current proposal allows children with individual taxpayer identification numbers, or ITINs, to receive the credit. These children, who are often undocumented children growing up in the United States, were excluded from the 2017 Tax Cuts and Jobs Act.
Thus, their parents were not able to claim the child tax credit or receive monthly payments through the enhanced benefit, as only children with a social security number were eligible.
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Including this provision in the future would restore the benefit to more than one million children, according to the Institute of Taxation and Economic Policy.
“Those children who belong to mixed immigrant families will benefit greatly from these benefits, like all families,” said Ashley Burnside, policy analyst at the Center for Law and Social Policy. “When we provide families with this additional monthly income, it allows them to buy basic items like food, rent and school supplies.”
A fully refundable credit
Another change Democrats are looking to keep is the full refund. Previously, the credit was only partially refundable, meaning it would only offset taxes owed or refund the taxpayer if they had taxable income of approximately $ 2,500 or more on their return.
Making the credit fully repayable means families with no taxable income, who are on the lowest incomes, can receive the money. This change helped some 27 million children who previously obtained partial credit or who did not receive credit because their families did not earn enough income.
“It really affects lower income families, and research has shown that [partial refundability] was part of the policy that excluded children of color, “said Amy Matsui, director of income security and senior lawyer at the National Women’s Law Center.” It is extremely important that this becomes permanent. “