INdustrycTceh INsight Logo

House raises child tax credit to $3,000 for a year

House raises child tax credit to $3,000 for a year

March 2, 2021: On Saturday, the House of Representatives passed the $1.9 trillion Covid-19 relief package, including a temporary increase in child tax credit.

The House’s American Rescue Plan increases the child tax credit for 2021 to $3,000 per child ages 6 to 17 and $3,600 annually for children under 6. The enhanced payments would start to phase out for individuals earning over $75,000 per year or $150,000 for those married filing jointly.

There’s already a child tax credit in place that provides $2,000 for each child. When Americans file their taxes, they can claim the credit for children under the age of 17. The present credit is income-based, so those making over $200,000 will see the amount of their credit gradually phased out.

“The coronavirus pandemic did not just shine a light on child poverty, it exacerbated it and amplified the need for expanding and improving the child tax credit,” Rep. Rosa DeLauro, D-Conn., said in a statement.

 The American Rescue Plan’s changes to the child tax credit will cut child poverty by half, according to the Center for Law and Social Policy.

According to CLASP, levels of poverty between Black children are expected to decrease by 52%, while those among Hispanic children will reduce by 45%.

According to the organization,

“If made permanent, these improvements will have multi-generational, positive effects.”

Several Democrats, spearheaded by DeLauro, supported a proposal that would make the enhanced payments permanent, but the language did not make it into the House legislation’s final version.

Additionally, Senator Mitt Romney, R-Utah, proposed a similar tax credit last month that is slightly more generous for younger children and lasts longer than the child credit offered as part of the $1.9 trillion relief package.

The House version of the American Rescue Plan will now go to the Senate, which is expected to vote on the package before March 14

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

Paycor | Making HR Simpler with AI | Ryan Bergstrom

Paycor’s human capital management (HCM) platform modernizes every aspect of people management, from recruiting, onboarding, and payroll to career development and retention, but what really sets us apart is our focus on leaders.

KAIRA | Easing Financial Stress for Employees | Eric Mac Nicoll

In today’s day and age, there are numerous reports of increasing anxiety levels, low motivation, and exhaustion. But have we ever thought that the people struggling with those problems are the same people showing up to work at various organizations? This is not about a few employees just having a bad day.

HiBob | The Right HR Partner | Ronni Zehavi

HiBob is at the forefront of HR innovation, transforming the way organizations operate in the modern world of work with its award-winning HCM ‘Bob’. Its modular approach caters to the needs of multinational companies seeking agile technology and robust analytics to support operations across distributed workforces in the ever-evolving economic and workplace landscape.

BambooHR | A Company Favorite | Bradley Rencher

Sandy Sorzano, Director of People + Brand at MMA Design, is highly protective of the company’s much-loved, tight-knit culture. So when inefficient processes started taking more and more time away from the work that builds and preserves that culture, Sandy knew it was time for a change. After implementing BambooHR Benefits Administration, she now has more capacity to give her strategic initiatives the attention they need. | Seamless Work Experiences | Eran Zinman

In an article by Jared Newman in Fast Company, he writes exceptionally about the company. While other software companies are trying to offer the One True App for project management, is moving in the opposite direction.