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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 ...