DOCSLIB.ORG

Administration of Joseph R. Biden, Jr., 2021 Remarks on Child Tax Credit

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Administration of Joseph R. Biden, Jr., 2021 Remarks on Child Tax Credit Administration of Joseph R. Biden, Jr., 2021 Remarks on Child Tax Credit Relief Payments July 15, 2021 Thank you. Thank you. Well, for you—anybody under the age of 13—this has got to be boring, boring, boring for you. [Laughter] Right? Well, I'll tell you what, we have to work something out here so that when this is over, your parents, your uncles, your aunts—whoever you're with—they owe you some ice cream or something for this. You know? [Laughter] Folks, it's a pleasure to be here. I'm going to take a sip here. [At this point, the President took a drink of water.] And this—I believe this is actually a historic day, a historic day in the sense that we continue to build an economy that respects and recognizes the dignity of working class families and middle class families. It's historic, and it's our effort to make another giant step toward ending child poverty in America. I think this will be one of the things that the Vice President and I will be most proud of when our terms are up. Beginning this morning, nearly all working families—that is people making under $150,000 as families or an individual making under $120,000—$25,000—who have children, are raising children in America, they're going to receive their first monthly tax cut payment. That payment from the expanded child tax credit that we signed into law as part of my—our American Rescue Plan. It's one of the largest ever single tax cuts for families with children, and it's a reflection of our belief that the people of this country who need a tax cut aren't the folks at the top. They've got plenty of tax cuts. They're doing just fine. But it's the people in the middle, the folks who are struggling, who are just looking for a little bit of, my dad would say, "a little bit of breathing room." A little bit of breathing room. And this has the potential to reduce child poverty in the same way that the Social Security reduced poverty for the elderly. And by the way, you think of monthly payments—you get a Social Security check—those who you know get Social Security, they get it monthly. Well, this will be—unless you want it in one lump sum, this would be a monthly payment for childcare— for—excuse me, for your children, a tax cut. And here's how the tax credit works: For every child under the age of 6, a parent will get $3,600 a year. For every child 6 to 17, they'll get $3,000 per year. For example, a middle class family with two young children would expect to receive $7,200 a year to help raise their children. This will be the—they'll get the first half of this $3,600 starting today. Today. Today. And it will be paid out at $600 a month between now, July, and December. And then, they're going to get the rest of the payment next spring around tax day. Now, if you file taxes electronically, you can go to your bank account today—today—and you'll see a child—a payment that says "Child CTC." Let me say that again: payments of $300 for each child under the age of 6, $250 for each child between the ages of 6 and 17 on a monthly basis between now—between July and December. If you don't file electronically—your taxes electronically, as you did last year, you can expect to receive a check in the mail beginning today or a few days from now. And you'll get this payment on the 15th of every month for the rest of this year. 1 And if you're not required to file taxes at all in the past—you haven't filed because you didn't owe any taxes—then you can go to: childtaxcredit.gov. Let me say it again: childtaxcredit.gov. And you will give you—they'll give you clear information and a link to help you sign up for the first time. This can be lifechanging for so many families. Because of the way the tax credit was structured before the American Rescue Plan, more than 26 million children from the hardest pressed working families didn't get any full payment for the child credit—for childcare—for child tax credit. Half of all Black and Hispanic children in America never received the full tax credit. We've changed all that. In technical terms, we've made this tax cut fully refundable. In plain English, it means instead of families who need help the most getting the least, the hard-working—the hard-working families—will get this on a monthly—full monthly basis. Ninety-seven percent of the children receiving this credit come from working families. And the other 3 percent includes kids being raised by retired grandparents or by someone with a serious disability. And by the way, this credit doesn't start to phase out until a couple is making $150,000 or a single parent is making $112,000 [$112,500].* It begins to phase out then. This is a middle class tax cut. When I came up—when I decided I wanted this in the legislation, I referred to it in the way it really is: It's a middle class tax cut. It's just like the wealthy get tax cuts for a lot of things, this is a tax cut for your children—having children. And this can make it possible for a hard-working parent to say to his or her child: "Honey, we get—you can get your new braces now. We can get you a tutor to help you in that math class you're having trouble with. We can get you the sports equipment you need to sign up to—for your first team you're going to play on." People have written me to tell me they'll use the money to buy their kids new shoes, to send them to summer camp, to cover afterschool care when school starts up again. You know—and to give you a sense of how transformative this is: This would be the largest ever 1-year decrease in child poverty in the history of the United States of America—as we begin now. Historic reductions in child poverty among white, Black, and Latinos, and AAPI communities. It's not even close. The benefits will be felt for years. Studies have shown—— [A baby in the audience cried out.] ——that tax relief that helps children—that's okay, don't worry about it. It's okay to let him cry, or her, whichever—that helps children and can lead to better health, better school performance, and better future earnings. In fact, research from Columbia University in New York found that for each dollar this tax cut costs, it returns $8 in benefit down the line. Eight dollars would have to be spent other ways. It's a gigantic help. It's an 8-to-1 return. Your head, your heart, and your budget all lead to the same place. This is the right thing to do, and it's the smart thing to do. Today these tax cut payments are arriving automatically. But it didn't happen automatically—the result of the work that people who did this, advocating for this for a long, long time. And we finally got it passed in my American Rescue Plan. I want to particularly thank those who have been fighting for this for years: Congresswoman Rosa DeLauro from Connecticut. She has been a champion for this issue. Congressman Richie Neal and Torres. And Senators Bennet, Brown, and Booker. And Ron Wyden. * White House correction. 2 You'll probably hear from our Republican friends—all who voted against this—but they'll tout the success as it helps working families in their States and their districts. But in the coming days, we're also going to hear from them saying, "I want to now extend this tax"—it's only for 1 year now. It's all I could get it for, for the first time. And so I want to extend it into the future now. I have another piece of legislation that will be voted on soon, saying we're going to continue this. To the people who say we can't afford to give the middle class a break, I say: We can afford it, by making people at the top and the big corporations—over 50 of which paid no taxes last year at all—to finally just start paying their fair share. I'm not going to gouge them. Just pay their fair share. Because people who are working hard and paying taxes deserve a break. That's why—excuse me for all these terms I'm using, but my Build Back Better agenda, which still needs to be voted on in the Congress, keeps this tax cut for working families in place for years to come. We shouldn't let taxes go up on working families. We shouldn't let child poverty continue to stain the conscience or drag down our economy. And so I say to my colleagues in Congress: This tax cut for working families is something we should extend, not end, next year. And I say to all of you watching: Make sure your family, friends, and community know about this tax cut.
Load more

Recommended publications
  • Child Tax Credit & Credit for Other Dependents
    Child Tax Credit & Credit for Other Dependents Introduction The child tax credit is unique because if a taxpayer cannot benefit from the nonrefundable credit, the taxpayer may be able to qualify for the refundable additional child tax credit on Schedule 8812, Additional Child Tax Credit. In this chapter, we will learn about both credits and their relationship to each other. Some taxpayers may not be aware of these credits. Your time, effort, and understanding of this credit may result in a lower tax for the taxpayer. The child tax credit, credit for other dependents, and the additional child tax credit are entered on Form 1040. The intake and interview sheet, along with the Volunteer Resource Guide, Tab G, Nonrefundable Credits are critical tools needed to determine eligibility for the credit. Don’t confuse these credits with the child and dependent care credit! Objectives What do I need? At the end of this lesson, using your resource materials, you will be able to: □ Form 13614-C • Determine the taxpayer’s eligibility for the credit(s) □ Publication 4012 □ Publication 17 • Determine which taxpayer can claim the credits □ Publication 972 □ Schedule 8812 What is the child tax credit? Optional: The child tax credit is a nonrefundable credit that allows taxpayers to □ Form 1040 Instructions claim a tax credit of up to $2,000 per qualifying child, which reduces their □ Schedule 8812 Instructions tax liability. What is the additional child tax credit? Taxpayers who are not able to claim the full amount of the child tax credit may be able to take the refundable additional child tax credit.
    [Show full text]
  • Do You Have Children at Home and Need Money?
    Do You Have Children at Home and Need Money? Even if you have never filed taxes before and have little or no income, you are likely eligible for the Child Tax Credit of 2021, which is worth up to $3,600 per child. This is a big change. You can receive regular monthly advance cash payments between July and December 2021 of up to $300 per child per month! Most families don’t have to do anything to receive their Child Tax Credit payments. If you filed taxes this year (your tax return for 2020), filed last year (your tax return for 2019), or if you signed up for Economic Impact Payments (“stimulus checks”) using the IRS’s Non-Filer tool last year, you’re all set and the IRS will automatically send you monthly payments. If you haven’t filed taxes, it’s not too late to sign up to receive this credit! Sign up using the IRS and Code for America’s new mobile-friendly website: http://getctc.org/MEJ. Using this tool will set you up to receive the Child Tax Credit, as well as any stimulus payments you are eligible for but have not received. You can also sign up directly on the IRS’ website at: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer- sign-up-tool. Note: Families who want to claim other tax benefits, such as the Earned Income Tax Credit, should not use this tool and instead file a regular tax return. You can get free help with your taxes.
    [Show full text]
  • Understanding the Expanded Child Tax Credit
    Understanding the Expanded Child Tax Credit August 2021 What is the Child Tax Credit? The Child Tax Credit was first enacted in 1997 and has consistently helped families afford the everyday expenses of raising children. Until now, this has been done through a tax credit that some parents and caregivers could claim when they filed their taxes. Taxpayers who are eligible for the benefit are able to subtract its value from the total amount of taxes they owe. The American Rescue Plan, signed into law on March 11, 2021, makes the CTC available to more children and their families. It extends eligibility to the 23 million children—disproportionately Black and Latinx children—who previously did not qualify because their families make too little. It corrects a long-standing issue with the policy: reaching the kids who need help the most and doing right by our children. This expansion may significantly reduce child poverty and racial disparities this year, and in the long-term, it is likely to increase income security, provide flexibility and freedom to families, and invest in a brighter future for our children. What do I have to do to get the Child Tax Credit? Families who filed federal income taxes in 2020 or 2019 or signed up for the stimulus checks using the IRS’s non- filer portal last year will not need to take any additional steps to receive the benefit. On July 15, nearly 60 million children received the CTC benefit automatically, either via direct deposit to their bank accounts or in the form of a paper check.
    [Show full text]
  • The Earned Income Tax Credit and the Administration of Tax Expenditures, 90 N.C
    NORTH CAROLINA LAW REVIEW Volume 90 | Number 3 Article 5 3-1-2012 The aE rned Income Tax Credit and the Administration of Tax Expenditures Jonathan P. Schneller Follow this and additional works at: http://scholarship.law.unc.edu/nclr Part of the Law Commons Recommended Citation Jonathan P. Schneller, The Earned Income Tax Credit and the Administration of Tax Expenditures, 90 N.C. L. Rev. 719 (2012). Available at: http://scholarship.law.unc.edu/nclr/vol90/iss3/5 This Article is brought to you for free and open access by Carolina Law Scholarship Repository. It has been accepted for inclusion in North Carolina Law Review by an authorized administrator of Carolina Law Scholarship Repository. For more information, please contact [email protected]. THE EARNED INCOME TAX CREDIT AND THE ADMINISTRATION OF TAX EXPENDITURES* JONATHAN P. SCHNELLER** The field of tax expenditure analysis has generally assumed a binary choice between tax expenditures and direct outlays. Because tax expenditures have multiple traits that are said to render them a suboptimal spending mechanism, scholars have tended to argue that they should be eliminated outright, or that they should be recast as direct expenditures. But despite such arguments, tax expenditures have proven to be a resilient (and politically popular) part of the American policy landscape, and in recent decades they have expanded in both number and size. This remarkable staying power suggests that tax expenditure analysis may do well to shift its focus from outright elimination to reforms that remedy or mitigate tax expenditures' more problematic attributes. This Article uses a case study of the Earned Income Tax Credit (EITC) to explore one particularly promising target for such reforms: the administration of tax expenditures.
    [Show full text]
  • Publication 526, Charitable Contributions
    Userid: CPM Schema: tipx Leadpct: 100% Pt. size: 8 Draft Ok to Print AH XSL/XML Fileid: … tions/P526/2020/A/XML/Cycle04/source (Init. & Date) _______ Page 1 of 26 13:45 - 3-Mar-2021 The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing. Publication 526 Cat. No. 15050A Contents What's New .................. 1 Department of the Charitable Reminders ................... 1 Treasury Internal Introduction .................. 2 Revenue Contributions Service Organizations That Qualify To Receive Deductible Contributions .............. 2 For use in preparing Contributions You Can Deduct ...... 3 2020 Returns Contributions You Can't Deduct ...... 7 Contributions of Property .......... 8 When To Deduct .............. 14 Limits on Deductions ........... 14 Substantiation Requirements ...... 20 How To Report ............... 22 How To Get Tax Help ........... 23 Index ..................... 26 Future Developments For the latest information about developments related to Pub. 526 (such as legislation enacted after we release it), go to IRS.gov/Pub526. What's New Cash contributions if you don’t itemize de- ductions. If you don’t itemize your deductions on Schedule A (Form 1040), you may qualify to take a deduction for contributions of up to $300. See Cash contributions for individuals who do not itemize deductions, later. Temporary suspension of limits for cash contributions. Certain cash contributions you made are not subject to the 60% limit for cash contributions. See Qualified cash contributions for 2020, later. Temporary increase in limits on contribu- tions of food inventory. The limit on contribu- tions of food inventory has increased from 15% to 25% for business taxpayers. See Food In- ventory, later.
    [Show full text]
  • The Distributional Implications of a Carbon Tax in Ireland
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Callan, Tim; Lyons, Seán; Scott, Susan; Tol, Richard S. J.; Verde, Stefano Working Paper The distributional implications of a carbon tax in Ireland ESRI Working Paper, No. 250 Provided in Cooperation with: The Economic and Social Research Institute (ESRI), Dublin Suggested Citation: Callan, Tim; Lyons, Seán; Scott, Susan; Tol, Richard S. J.; Verde, Stefano (2008) : The distributional implications of a carbon tax in Ireland, ESRI Working Paper, No. 250, The Economic and Social Research Institute (ESRI), Dublin This Version is available at: http://hdl.handle.net/10419/50117 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu Working Paper No. 250 July 2008 www.esri.ie The Distributional Implications of a Carbon Tax in Ireland Tim Callana, Seán Lyonsa, Susan Scotta, Richard S.J.
    [Show full text]
  • Guide to Completing 2019 Pay & File Self-Assessment Returns
    Guide to Completing 2020 Pay & File Self-Assessment Returns Guide to Completing 2020 Tax Returns Page 1 RPC015255_EN_WB_L_1 The information in this document is provided as a guide only and is not professional advice, including legal advice. It should not be assumed that the guidance is comprehensive or that it provides a definitive answer in every case. Guide to Completing 2020 Tax Returns Page 2 Contents Page PART ONE Who is this guide for? 4 About this guide 4 Expression of Doubt 5 Accessibility 6 Revenue contact details 6 Revenue Online Services (ROS) 6 Mandatory e-filing 7 General guidance on completing a tax return 8 Introduction to self-assessment 8 Panel PART TWO A Personal Details 11 B Income from Trades, Professions or Vocations 14 C Irish Rental Income 23 D Income from Irish Employments, Offices (Including Directorships), Pensions, etc. Income from Foreign Offices or Employments attributable to the Duties of those Offices and Employments Exercised in Ireland 25 E Foreign Income 31 F Income from Fees, Covenants, Distributions, etc. 35 G Exempt Income 37 H Annual Payments, Charges and Interest Paid 39 I Claim for Tax Credits, Allowances, Reliefs and Health Expenses 45 J High-Income Individuals: Limitation on Use of Reliefs 53 K Capital Acquisitions in 2020 54 L Capital Gains in 2020 54 M Chargeable Assets Acquired in 2020 56 N Property Based Incentives on which Relief is claimed in 2020 56 O Self Assessment made under Chapter 4 of Part 41A 58 PART THREE Income Tax Calculation Guide 2020 59 Index 65 Guide to Completing 2020 Tax Returns Page 3 PART ONE Who is this guide for? The main purpose of this Guide is to assist individuals who are taxed under the self- assessment system to complete their 2020 Tax Return – the Form 11.
    [Show full text]
  • The Expanded Child Tax Credit (Ctc) for Hfny Families—More Money in Pockets This Year!
    THE EXPANDED CHILD TAX CREDIT (CTC) FOR HFNY FAMILIES—MORE MONEY IN POCKETS THIS YEAR! FREQUENTLY ASKED QUESTIONS SHEET from information gathered from https://www.irs.gov/credits- deductions/advance-child-tax-credit-payments-in-2021 And https://www.consumerfinance.gov/about-us/blog/get-the-most-out-of-your-tax-refund-in-2021/ What is this tax credit? The IRS says that this is an expanded tax credit just for 2021 that provides more money for families with eligible children through the American Rescue Plan Act (ARPA) of 2021. Many families can receive advance payments starting this summer. The expanded and newly-advanceable (meaning advance payments) Child Tax Credit (CTC) was authorized by the American Rescue Plan Act, enacted in March 2021. The letters are going to families who may be eligible based on information they included in either their 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov last year to register for an Economic Impact Payment. How much money will I get? For tax year 2021, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021. (Before, it was up to $2,000 per qualifying child under the age of 17 at the end of the year.) TIMELINE FOR THE CHI LD TAX CREDIT PAYMEN TS Maximum payment per child 5 and Maximum payment per child; 6 to to Monthly younger 17 July 15: First 2021 check $300 $250 Aug.
    [Show full text]
  • A Reference Manual for Child Tax Benefits
    A Reference Manual for Child Tax Benefits Elaine Maag Stephanie Rennane C. Eugene Steuerle Discussion Paper No. 32 April 2011 Elaine Maag is a senior research associate with the Urban-Brookings Tax Policy Center. Stephanie Rennane is a research associate with the Urban Institute. C. Eugene Steuerle is an Institute fellow and a former deputy assistant secretary of the Treasury. The Urban–Brookings Tax Policy Center The Tax Policy Center (TPC) aims to clarify and analyze the nation‘s tax policy choices by providing timely and accessible facts, analyses, and commentary to policymakers, journalists, citizens, and researchers. TPC‘s nationally recognized experts in tax, budget, and social policy carry out an integrated program of research and communication on four overarching issues: fair, simple and efficient taxation; long-term implications of tax policy choices; social policy in the tax code; and state tax issues. Support for TPC comes from a generous consortium of funders, including the Annie E. Casey Foundation, the Bill and Melinda Gates Foundation, the Charles Stewart Mott Foundation, the Ford Foundation, the John D. and Catherine T. MacArthur Foundation, the Lincoln Institute of Land Policy, the Popplestone Foundation, the Price Family Charitable Fund, the Rockefeller Foundation, and the Stoneman Family Foundation, as well as several private and anonymous donors. The views expressed are those of the authors and do not necessarily reflect those of the Urban Institute, the Brookings Institution, their boards of trustees, or their funders. Publisher: The Urban Institute, 2100 M Street, N.W., Washington, DC 20037 Copyright © 2011 The Urban Institute Permission is granted for reproduction of this document, with attribution to the Urban Institute.
    [Show full text]
  • Our Guide to the New Child Tax Credit in English
    Do You Have Children at Home and Need Money? Even if you have never filed taxes before and have little or no income, you are likely eligible for the Child Tax Credit of 2021, which is worth up to $3,600 per child. This is a big change. You can receive regular monthly advance cash payments between July and December 2021 of up to $300 per child per month! Most families don’t have to do anything to receive their Child Tax Credit payments. If you filed taxes this year (your tax return for 2020), filed last year (your tax return for 2019), or if you signed up for Economic Impact Payments (“stimulus checks”) using the IRS’s Non-Filer tool last year, you’re all set and the IRS will automatically send you monthly payments. If you haven’t filed taxes, it’s not too late to sign up to receive this credit! Sign up using the IRS’ new portal: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool. Using this tool will set you up to receive the Child Tax Credit, as well as any stimulus payments you are eligible for but have not received. Note: Families who want to claim other tax benefits, such as the Earned Income Tax Credit, should not use this tool and instead file a regular tax return (the deadline for filing taxes was May 17, but if you do not owe taxes, you do not have to file for an extension and can file your 2020 taxes any time before October 15, 2021).
    [Show full text]
  • WSHFC | AMC | Tax Credit Compliance Procedures Manual
    WASHINGTON STATE HOUSING FINANCE COMMISSION TAX CREDIT COMPLIANCE FREQUENTLY ASKED QUESTIONS Latest Revision Date: July 2021 These FAQs are based on WSHFC staff interpretations or understanding of IRS rules and guidance for the LIHTC program. Ultimately, Owners are responsible for making sure their properties are in compliance with all applicable rules and regulations. Owners and managers should consult their tax credit legal counsel for further clarification or specific application to their properties. CERTIFICATIONS & LEASING Discrimination in Leasing Q: Can I refuse to rent to a person if I don’t like their source of income? A: No. All vacant units must always be available to the general public and must be rented in accordance with local and state law, including nondiscrimination ordinances and Fair Housing regulations. Please consult your attorney if you are unfamiliar with your local and/or WA state landlord-tenant laws. You can learn more about nondiscrimination and Fair Housing by reviewing Fair Housing resources on WSHFC’s website, under the Resources heading. Initial Lease Term Q: Can I switch a resident’s lease term to month to month after they’ve lived at my property for a few months? A: No. Owners/managers must sign a minimum six-month lease at the time a household moves into a tax credit unit. The initial lease term can be for longer than six months, but it cannot be less than six months. Overcharging Rent Q: What happens if I accidentally overcharge a resident on their rent? A: If a resident’s gross rent (utilities + fees + rent) exceeds the federal (i.e., 50% or 60%) tax credit maximum rent limit for any month during the reporting year, WSHFC is obligated to issue Form 8823 to the IRS for owner noncompliance.
    [Show full text]
  • Take-Up of Tax Credits
    Take-up of tax credits Helen Breese (HM Revenue and Customs) Natalie Maplethorpe (National Centre for Social Research) Mari Toomse (National Centre for Social Research) HM Revenue and Customs Research Report Number 144 Disclaimer The views in this report are the authors’ own and do not necessarily reflect those of HM Revenue & Customs. © Crown Copyright 2011 Copyright in the typographical arrangement and design rests with the Crown. This publication may be reported free of charge in any format or medium provided that it is reproduced accurately and not used in a misleading context. The material must be acknowledged as Crown copyright with the title and source of the publication specified. Published by HM Revenue and Customs, August 2011 www.hmrc.gov.uk 2 Contents Executive summary .................................................................................................. 4 1 Introduction .......................................................................................................... 5 2 Reasons for non take-up ..................................................................................... 6 2.1 Awareness......................................................................................................................6 2.2 Reasons for non take-up................................................................................................ 6 2.3 Whether ENRs would claim if made aware of eligibility ................................................. 8 3 Influence of current tax credits recipients on take-up...................................
    [Show full text]