1 million more kids could get the child tax credit in the future
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@lelia_milaya via Twenty20
If changes to the child tax credit put forward by Democrats stick, more children than ever will be eligible for the benefit.
Children with ITINs or individual taxpayer ID numbers will be able to get the credit under the new proposal. The 2017 Tax Cuts and Jobs Act did not include these children, many of whom are undocumented as kids growing up in America.
As only children with Social Security numbers are eligible for the child tax credit and the enhanced benefits, parents cannot claim this benefit.
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Including this provision going forward would restore the benefit to more than 1 million children, according to the Institute on Taxation and Economic Policy.
“These kids are who are in mixed immigrant status families will be able to benefit greatly from having these benefits just like all families,” said Ashley Burnside, a policy analyst at the Center for Law and Social Policy. This extra income allows families to purchase basic needs such as food, rent, and school supplies.
A fully refundable credit
Another change that Democrats are looking to keep is full refundability. Previously, the credit was only partially refundable, meaning it would only offset taxes owed or be returned to the taxpayer in a refund if they had taxable income of about $2,500 or more on their return.
Making the credit fully refundable This means that even families with the lowest incomes and no taxable income can get the money. This change helped some 27 million children who previously got partial credit or missed out because their families didn’t earn enough income.
“That really affects the lowest-income families, and the research showed that [partial refundability] was part of the policy that boxed out children of color,” said Amy Matsui, director of income security and senior counsel at the National Women’s Law Center. This is why it’s so important that the policy be made permanent.
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