If a new proposal is approved, eligible New York families could receive a new child tax credit of up to $1,500 every three months. This new proposal, known as the Working Families Tax Credit, was introduced in December and has gained support from lawmakers nationwide.
What Makes New York’s Child Tax Credit Unique?
State Sen. Andrew Gounardes sponsored a bill in the state senate called the Working Families Tax Credit in December 2022. This bill proposes a New York child tax credit of up to $1,500 per child four times a year.
Since its introduction, the bill has gained support, and the most recent supporter is Councilmember Alexa Avilés. Avilés introduced a resolution on Thursday calling for reinstating the child tax credit. The bill is also supported by Assemblyman Andrew Hevesi (D-Queens).
According to the legislation, eligible families will receive a child tax credit from New York every three months. The credit amount would be reduced based on income.
If approved, Gounardes’ Working Families Tax Credit would combine the Empire State Child Tax Credit and the Earned Income Tax Credit into one. This would make the credits more efficient while also expanding coverage to more families.
Furthermore, the new child tax credit would eliminate the exclusion of children under the age of four, as well as include all families regardless of immigration status. The credit also eliminates income phase-in, allowing those with the lowest income to receive the most credit.
READ ALSO: New York’s Working Family Tax Credit Offers Fully Refundable Child Tax Credit
What Is the Purpose of the Working Families Tax Credit?
Gounardes’ bill is similar to the federal tax credit, which is set to expire in December 2021. President Joe Biden’s $1.9 trillion coronavirus relief package included the federal tax credit. Several studies show that the federal child tax credit reduced child poverty.
According to a report from the nonprofit Robin Hood and Columbia University, the federal child tax credit has helped to reduce child poverty by more than 30% in New York City alone by 2021. Around 120,000 children were saved from poverty thanks to the credit.
A financial advisor can help you understand real estate’s benefits and drawbacks. Finding a competent financial advisor can be simple. SmartAsset’s free tool matches you with up to three local financial advisors, and you can interview your advisor matches for free to determine which one is best for you.
READ ALSO: New Jersey Gov. Murphy Offers $1 Billion For A Universal Pre-K That Doubles The Child Tax Credit