Bigger tax break for households with kids in Biden $1.9 trillion proposal
Contributed By:The 411 News
Legislation calls for payments to be made monthly instead of lump sum
Under current law, most taxpayers can reduce their federal income tax bill by up to $2,000 per child. The package moving through the Senate would increase the tax break to $3,000 for every child age 6 to 17 and $3,600 for every child under the age of 6.
The legislation also calls for the payments to be delivered monthly instead of in one lump sum. If the secretary of the Treasury determines that isn't feasible, then the payments are to be made as frequently as possible.
Also, families would get the full credit regardless of how little they make in a year, even if it is just a few hundred dollars, leading to criticism that the changes would serve as a disincentive to work.
Add in the $1,400 per individual checks and other items in the proposal, and the legislation would reduce the number of children living in poverty by more than half, according to an analysis from the Center on Poverty and Social Policy at Columbia University.
Story Posted:03/04/2021
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