Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Child Tax Credit Boost in Democrats’ Sights for Next Congress

Dec. 30, 2020, 3:01 PM

Democrats are looking to build on a small win for a tax benefit that can make or break the finances of low-income parents as President-elect Joe Biden takes office.

Tucked in the nearly 5,600-page, recently enacted pandemic relief and budget law is a provision allowing recipients of credits for low-income earners and low- and middle-income parents to use their 2019 income rather than this year’s to calculate their amounts. This provides a cushion to people whose incomes have dropped to roughly zero during the pandemic-induced recession, as the credit amounts increase with incomes at the lower end of the earnings ...