News Round Up: May 23, 2022
Top Story: The Michigan Legislature passed a $2.6 billion tax plan that includes an increase in the state’s Earned Income Tax Credit (EITC) from 6 to 20 percent of the federal credit and creating a $500 state Child Tax Credit (CTC). (U.S. News)
- Applications for Connecticut’s new $250 CTC will be open to eligible families starting June 1st. (KPVI)
- The Internal Revenue Service (IRS) recently released a set of guidelines and instructions on how Puerto Rico residents can file for and claim the CTC under the American Rescue Plan Act. (CPA Practice Advisor)
- Los Angeles Assemblyman Miguel Santiago proposed Assembly Bill 2589 that would expand California’s Young CTC to provide a one-time $2,000 tax credit per child for low-income families. The plan would also raise the minimum amount for the state’s EITC from $1 to $255 to prevent children and households from falling further into poverty. (CBS Los Angeles)
- Minnesota lawmakers agreed on a bipartisan budget plan that includes an expanded Child and Dependent Care Tax Credit (CDCTC) expected to assist roughly 81,000 households. (CBS Minnesota)
- A recent report by the U.S. Government Accountability Office (GAO) found that collected tax data do not consistently align with household demographics which makes it difficult to analyze the relationship between tax policies and individual characteristics. Researchers noted this disconnect might result in “disparate tax outcomes.” (U.S. Government Accountability Office)