There were also eligibility restrictions for the CTC that excluded filers from being able to claim 17-year-old children for the credit.īoth the EITC and the CTC provide direct resources to Granite Staters and bolster local economies. Many individuals and families with lower incomes were excluded from receiving any EITC dollars, particularly workers aged 19 to 24 and 65 and older without qualifying children. The credit amount for the CTC also gradually scales down once income grows beyond a certain threshold.ĭespite the availability of these credits to many people in New Hampshire, several groups were ineligible to receive support prior to the temporary changes implemented for the 2021 tax year. By design, the EITC incentivizes employment and work as the credit amount increases as earned income rises, then declines once passing a certain point. The EITC and the CTC can reduce poverty, improve economic stability and mobility, and support the health and overall outcomes of children, especially among recipients with lower incomes. Both were meaningfully expanded and modified by the passage of the American Rescue Plan Act (ARPA) for tax year 2021. These programs provided significant financial relief to individuals and families, in the form of refundable and non-refundable tax credits, before and during the COVID-19 pandemic. In 1997, the Child Tax Credit (CTC) was enacted to provide additional assistance to families with children. The Earned Income Tax Credit (EITC), established in 1975, provides assistance to working individuals and families with low incomes.
0 kommentar(er)
