News Round Up: June 14, 2021

Top Story: The Internal Revenue Service (IRS) launched a portal for families who did not file tax returns in 2020 to sign up to receive monthly Child Tax Credit (CTC) payments, which will begin on July 15. (IRS)

  • A new analysis by the Brookings Institutions-Urban Institute Tax Policy Center showed that President Joe Biden’s tax proposals, including extending recent Earned Income Tax Credit (EITC) and CTC increases, would cut taxes substantially for families with children. (Tax Policy Center)
  • The Biden Administration declared June 21 as Child Tax Credit Awareness Day and released guidance on its proposed expansions to the Child and Dependent Care Tax Credit (CDCTC). (The White House)
  • A new blog post from the Institute on Taxation and Economic Policy (ITEP) examined the 2021 CTC expansion and its benefits to the American economy, finding that permanently expanding the credit would provide a $111 billion total income boost to nearly 90% of children. (ITEP)
  • Last week, Connecticut lawmakers passed a two-year state budget that will restore the state’s EITC to 30% of the federal credit. However, the final budget deal did not include a $300-per-dependent CTC, promoted by advocates as major tax relief for middle- and lower-income families. (CT Mirror)
  • California Attorney General Rob Bonta clarified to financial institutions, creditors, and debt collectors, that garnishing CTC payments for specific debts is illegal in the state, making sure that eligible families will receive their full credits. (State of California Department of Justice)
  • Colorado lawmakers passed legislation to fund the state CTC for families earning $85,000 or less, or individuals earning $75,000 or less, and to expand the state EITC to 20%, sending the tax package to Gov. Jared Polis (D) for his signature. Both credits will be available to taxpayers filing with Individual Taxpayer Identification Numbers (ITINs). (Colorado Sun)
  • Louisiana lawmakers passed legislation to extend the state EITC through 2030. (AP)