How does the new "children's tax credit" work in 2021 mean for families in the north?

How does the new "children's tax credit" work in 2021 mean for families in the north?

The relief bill

Congress submitted a landmark novel coronavirus-infected pneumonia relief bill to President Joe Biden on Wednesday after he passed it today due to the firm opposition of Republicans.

Republican Congressman Alice Stfarnick voted against the bill, calling it a party spending package containing a "far-left wish list". She also said that the existing trillions of dollars of stimulus funds have not been used.

Also read: joe Biden signed $1.9 trillion dollars for COVID-19 relief 

There are many things in the relief bill that need to be broken. One of the biggest things on this "may list" is the new children's tax credit for the transition in 2021. It will have a huge impact on low- and middle-income families and pave the way for universal family income.

What does it look like?

Imagine going to your mailbox every month to get a check for each of your children for $300. This is what the new children's tax credit looks like.

At present, the tax credit for children is as high as $2,000 per child. Under the new stimulus bill, the annual income of children under five years of age will increase to $3,600, and school-age children under the age of seven will jump to $3,000.

Perhaps among the biggest changes, new credits can be used by more households.

Under the current system, if you don't have enough income, you will get a small or only part of the child tax credit. This misses the poorest families, as well as the families that are most important to them for thousands of dollars. Under the new bill, the full benefit is extended to single parents with an income of $112,500 and couples with an income of $150,000. It includes the poorest families and more middle-class families.

New York Senator Christen Gillibrand said she hoped it would help fill the gap in the family.

Provide more resources for food, clothing, extracurricular and extracurricular activities... What parents can't afford now. And put the food on the table.

Monthly installment payment instead of annual deduction

Another major change is how families will get this money. At present, it is taxed once a year. Starting from July, the new tax credit will be paid in monthly installments - checked in each child's mail or direct deposit. This is a child allowance similar to that in Canada and Sweden.

No conditions attached. This money can be used for groceries, utilities or childcare.

This has a great impact on people. Cathy Broad, director of the Jefferson-Lewis childcare program, said that I think what may happen will give parents a choice. If you know that you will get a tax credit every month, you can budget for childcare, you can budget for specific things, which can get you out of solving other problems.

Broad said that for families with two low- or middle-income children, a reliable cost of $600 per month will mean a lot. This may allow the child to take care of the child and let his parents go back to work. Reliable tuition fees are also good news for childcare providers. It may also have a stable impact on childcare programs.

Not forever...?

At present, as part of the new coronavirus relief, the incremental and monthly installment plans are limited to 2021. The increase and monthly installments will expire at the end of the year.

Critics want it to stay in this state. They predicted that this would help the state of welfare.

Brod said it was an opportunity to try to observe and actually measure the impact of universal income on families.

It will be tested. Have a chance to see that it works for our economy, family and children? Because if so, let's expand it. It really shouldn't be short-term prospects for every family to choose, be able to make decisions and succeed.