House democrats are pushing for a change in the way the IRS issues child tax credits, aiming to put money into the pockets of American families who would otherwise have to wait for tax season.
"That's again emergency funding and something that will help people get through this period of time," said White House Press Secretary Jen Psaki.
This plan is similar to a proposal first introduced by Utah senator Mitt Romney last week. The plan would give tax credits of $3,600 for every child under the age of six....$3,000 for kids six to 17. Americans who make more than $75k would receive lower benefits.
This will replace the yearly child tax credit of two thousand dollars usually seen during tax season. If passed, monthly payments of 250 dollars for children 6 to 17 and $300 for children under 6 years of age will be sent out by the IRS over the course of 1 year starting in July of 2021. The benefit will not be deducted from your current tax obligation, meaning you will not have to pay taxes on it when you file in 2022.
"I can't think of a better recipient than the children. So many families right now are having a hard time even though they may be working," said Reno local Kenneth Mckin.
Latryce Lewis, a Reno mother of 2 says it can be a game changer, especially for the almost 27 million children in lower income families who would otherwise not be eligible for the child tax credit because they do not meet the income threshold.
"If they don't have that money to support their families, then things get rough and they have to start going to food banks and eventually move out of their house and not have anywhere to live. We would rather those kids stay in their home than having to live in a shelter or on the street," said Lewis.
The U.S. has one of the highest child poverty rates in the world, and is one of the key topics president Biden wants to tackle in his first year.
A recent study by Columbia University shows that Biden’s proposal could cut child poverty in half in America.
"I believe that will help a lot for children to go to the doctors, to go to the dentists, to have school supplies, clothes, anything that children may need," said Lewis.
