Child Tax Credit Archives - The Connecticut Star

Congress Reaches Deal to Increase Child Tax Credit, Negotiate Tax Treaty with Taiwan

January 17, 2024January 16, 2024 Connecticut Star Staff

Congressional negotiators from the Senate and House of Representatives announced a deal on Tuesday to increase the child tax credit and negotiate a new bilateral tax treaty with Taiwan, among other matters.

The child tax credit was first enacted in 1997 to provide parents with greater funds to care for children under the age of 17 and was expanded in 2021 under the American Rescue Plan Act, though that expansion expired in 2022 and has not been reauthorized. The new deal — known as the “The Tax Relief for American Families and Workers Act of 2024” — reached between Democrats and Republicans in Congress will change the way the tax credit is calculated, increase the credit every year until 2025 and index it to inflation, according to a technical summary of the plan published by the House Ways and Means Committee.

New IRS Guidelines for Electric Car Tax Credit ‘Recipe for Fraud,’ Tax Watchdog Warns

November 20, 2023 Just the News

New Internal Revenue Service (IRS) guidelines for the federal electric vehicle (EV) tax credit are a “recipe for fraud,” warns the head of the Tax Foundation.

Consumers will now be able to automatically claim the tax credit at the point of sale on new or used EV purchases, rather than wait to claim it on their tax return, according to the latest Treasury Department guidance.

IRS Destroyed 30 Million Tax Filing Documents, Lawmakers Demand Answers

June 14, 2022June 13, 2022 The Center Square

The Internal Revenue Service has been under fire for delays and millions of backlogged returns, but now lawmakers are raising the alarm after the federal agency “destroyed” millions of Americans’ tax documents.

Republicans on the House Oversight Committee sent a letter to IRS Commissioner Charles Rettig this week asking for answers about why these records were destroyed.

Connecticut Child Tax Credit Program Accepting Applications

June 5, 2022June 4, 2022 The Center Square

Connecticut’s child tax credit program is now taking applications, Gov. Ned Lamont said.

The governor announced the application period for the 2022 Connecticut Child Tax Rebate will accept applications through July 31. The rebate was developed within the budget bill Lamont signed last month and provides a rebate of up to $250 per child up to three children.

Connecticut Child Tax Credit Application Period Opens in June

May 22, 2022May 21, 2022 The Center Square

Families in Connecticut can begin applying for the Child Tax Rebate in June, Gov. Ned Lamont said.

The governor announced Thursday afternoon that families who are eligible can earn up to $250 per child through the 2022 Connecticut Child Tax Rebate. The application period opens June 1. Earlier this month, the tax break was signed into law. The rebate is contained in the fiscal year 2023 budget adjustment bill, which includes more than $600 million in tax cuts.

Pressure from Lawmakers Grows As IRS Begins New Tax Season with ‘Continued Confusion’

March 15, 2022March 15, 2022 The Center Square

Lawmakers on both sides of the aisle are pressuring the Internal Revenue Service over ongoing problems and unaddressed issues from last year’s filing season even as this year’s season is in full swing.

A bipartisan group of more than 100 lawmakers from the U.S. House and Senate sent a letter to the IRS raising concerns about “continued confusion” and “numerous problems” with the agency.

Commentary: The GOP Can Reclaim the Child Tax Credit – And Use it to Win in 2022

February 1, 2022January 31, 2022 RealClearWire

As part of his Contract with America, House Speaker (and my former boss) Newt Gingrich helped first introduce the Child Tax Credit (CTC), passing it in 1997. Originally the idea of President Ronald Reagan, the CTC was founded on the conservative principles that raising children is God’s work, and parents should not be punished or held back for choosing family in a country that is always moving forward. President Trump continued this tradition by doubling the CTC in 2017. As Speaker Gingrich said during a 1995 speech, “We believe that parents ought to have the first claim on money to take care of their children rather than bureaucrats.”

Democrats reformed the CTC in 2021, as part of their wildly overdone American Rescue Plan. They’ve sought to continue their changes to the CTC in the even-more-overdone Build Back Better Act (BBB), a hulking Frankenstein of bad Democratic ideas. But the new version of the CTC may be an exception. It continues fulfilling Speaker Gingrich’s contract, empowering families to work and earn, and to raise their children with their own values. The spirit and core of that policy is even better reflected by flat, poverty-busting monthly disbursement of the credit. It’s the only salvageable ship in the sinking BBB fleet.

The CTC – in its 2021 form – does not stray too far from the $500-per-child tax cut that was initially passed in 1997. The payments, which provided eligible families with up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child aged 6 to 17, stimulated regional economies, protected families from rising costs, provided direct cash relief, and removed bureaucratic hurdles.