News Round Up: January 4, 2021

The COVID-19 pandemic is disproportionately affecting low-income communities and exacerbating economic inequality across the country. Throughout this crisis, TCWF will compile news, legislation, and research on how tax credits and other income-boosting policies can provide much-needed relief for the hardest-hit communities:

Top Story: Congress passed a new COVID-19 relief package that includes another round of Economic Impact Payments for struggling Americans and a “look-back” adjustment for the federal Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) that allows taxpayers to use their 2019 income to determine their credit eligibility and value for tax year 2020. (Tax Foundation)

  • A new policy brief from the Tax Policy Center examined the Economic Security Project’s proposal to expand the EITC to postsecondary students. (Tax Policy Center)
  • Spotlight on Poverty and Opportunity interviewed Michelle Dallafior, senior vice president for budget and tax at First Focus Campaign for Children, to discuss the growing national and bipartisan momentum to expand the federal CTC. (Spotlight on Poverty and Opportunity)
  • Former Illinois State House of Representatives Majority Leader Barbara Flynn Currie urged her former colleagues to support low-income families during the pandemic by doubling the value of the state EITC and removing certain eligibility requirements so young and older workers, filers using Individual Taxpayer Identification Numbers, students, and caregivers can claim the credit. (Chicago Tribune)