Many families to receive significant tax breaks per child 17-years-old and younger
NEW ORLEANS (WVUE) -Throughout the pandemic, Seleigh Taylor didn’t know how much both she and her 9-year-old daughter would miss school-provided meals.
“They’d get breakfast before school they used to call it breakfast club and she’s like hey I miss breakfast club, because she would form relationships with us with kids and teachers ad they can’t do it the same,” said Taylor. With schools constantly oscillating between virtual and in person, it was instead the Taylor household more often funding the “breakfast club”.
“I can’t believe how much I value it like school lunch, when I have to feed you guys this many more times a day, getting in and of course grocery prices and things are going up a lot,” said Taylor.
Needless to say with the house passing the American Rescue act, Taylor said she was excited by the prospect of more money for her household.
“Some of it will be for their college savings all those things we do provide,” said Taylor.
Once President Biden signs the American Rescue Plan, it will increase the tax breaks for families with children to $3,000 for every child ages 6 to 17 and $3600 for every child under the age of 6.
Dr. Amanda Heitz is an assistant professor of finance with Tulane university says the provisions make it so even more families qualify.
“As long as you file your taxes even if it’s a couple hundred you’ll be capable of receiving this rebate… previously if you didn’t file or didn’t have enough income to receive the tax credit you’d be out of luck, and if you think of who this impacts the most it’s the lowest income that need it the most,” said Heitz.
The bill asks that these payments be delivered monthly instead of a lump sum, though that decision lies with the treasury secretary. Heitz says these payments estimated to help bring nearly 45 percent of American children out of poverty.
“This is really exciting because the idea of child care of a child allowance is not something that’s new within the developed world, a lot of wealthy countries, habits, for example, Canada has one that’s approximately $40 million a year, but we’ve never had one that was new for us,” said Heitz.
The only thing: parents should use the money to benefit their children.
“It’s intended to give your children a better life so they benefit society at large,” said Heitz.
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