News Round Up: May 22, 2023

Top Story: Arizona Gov. Katie Hobbs (D) signed a new Child Tax Rebate that would provide eligible families up to $750 as part of a $17.8 billion state budget. (White Mountain Independent)

  • A Maine legislative panel voted to advance a bill that expands the state Child Tax Credit (CTC). If enacted, the tax credit will replace the current dependent tax credit, making the benefit fully refundable and increasing the value from $300 to $350 per dependent. (Maine Beacon)
  • The Minnesota Conference Committee reached an agreement on a $3 billion tax cuts package, which includes a one-time refundable tax credit that will provide families with up to $1,300, as well as an expanded state CTC valued at $1,750 per dependent. (Mshale)
  • After conducting an internal investigation, Commissioner Daniel Werfel of the Internal Revenue Service (IRS) issued a statement confirming that the IRS audits Black Americans at higher rates than what “would be expected given their share of the population.” Previous research has demonstrated that non-Black filers are five times less likely than Black Americans to be audited when claiming federal tax benefits like the Earned Income Tax Credit (EITC). (CBS News)
  • The Massachusetts Budget & Policy Center (MassBudget) published a new analysis of the Massachusetts House’s proposed tax cuts that would exacerbate economic and racial disparities. The analysis also underscores other proposed tax benefits, such as expanding the state EITC, that would advance equity. (Massachusetts Budget & Policy Center)
  • Tax Credits for Workers and Families (TCWF) recently released a new blog detailing nine essential tax terms for filers, including the difference between a tax credit and a tax deduction. Read on to learn more. (Tax Credits for Workers and Families)