More than 260,000 low- and middle-income families in New York City would benefit from a proposed expansion to a federal tax break meant to help cover the costs of raising children, according to a policy research institute.
Last month, the House passed a bipartisan tax package that included changes to the child tax credit that’s been around since the late 1990s. The bill, which still needs U.S. Senate approval, amends the long-standing tax break to help lower-income families with multiple children access the maximum benefit sooner.
The expanded tax credit would help about 35% of the city’s families, and would particularly help households with multiple children qualify for bigger tax credits and more money, according to an analysis of census data by the Center for New York City Affairs.
The bipartisan push for the expanded tax credit comes as a quarter of New York City children lived in poverty in 2022, according to a new report released on Wednesday by a Columbia University research group and the Robin Hood Foundation.
The report found that 420,000 children lived in poverty in 2022, up more than 60% from the year before, amid the expiration of pandemic-era benefits — including a generous child tax credit.
Child welfare nonprofits and antipoverty groups say the expansion of the tax credit is a good step toward pulling families above and over the poverty line. But the measure still falls short of the less restrictive rules implemented during the COVID-19 pandemic.
“It still has in place a lot of the work requirements, complexities of how much you get refunded based on your income,” said Lauren Melodia, deputy director of economic and fiscal policies at the New School’s Center for New York City Affairs. Melodia used census data to estimate the number of affected families.
Melodia said about 730,000 city families are eligible for the credit but families in deep poverty with little to no income will still be left out since they’re below the income threshold or earn…
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