What other breaks would families and workers get? That would include 2 million workers over age 65 and 5 million adults 18- to 25-years-old, it added. On average, the expansion would cut taxes by $800 each for 19 million individuals and couples who are working, the White House said. The Biden plan also would expand the EITC to include more low-wage workers without kids, as well as older Americans. By comparison, a family with three kids can get as much as $7,430, according to IRS rules. For instance, workers without children can qualify for the EITC, but they are limited to a maximum credit of $600. In its current form, the EITC is mostly geared toward low- and middle-income families with children. Under his proposal, more people without children and senior citizens could receive the credit. How would low- and middle-income workers get a tax break?īiden wants to expand the Earned Income Tax Credit, or EITC, a tax credit that is aimed at workers with incomes below about $64,000 annually. It's typically reflected either in a tax refund or by reducing their tax liabilities. Providing monthly checks represents "a more practical solution to ensure that families can receive relief when they need it most instead of in one lump sum at the end of the year," the Treasury Department said Monday in a statement.Ĭurrently, families receive the CTC once per year, when they claim it on their annual tax return. Parents who qualify for the CTC would also again receive monthly checks from the IRS. Like in its pandemic form, the expanded credit would again provide $3,000 per child for kids six years and older and $3,600 for each child under six, instead of its current $2,000 limit. Under the Biden budget, the expanded CTC would be restored.
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