To provide needed support to more of North Carolina's working families and their children, Congress should act make permanent the recently lowered earnings threshold for the Child Tax Credit and end annual increases.
Overview
The federal Child Tax Credit (CTC) currently provides families with a $1,000 tax credit for each child under the age of 17. However, until recent changes, current law has required that a family earn at least $12,050 to be eligible for the credit, leaving out millions of poor children. In addition, that minimum income is continuously adjusted upward for inflation. The credit rises further out of reach every year for the many working families in low-wage jobs with stagnant earnings.
Did you know? 1-in-5 children under the age of 17 in North Carolina would be helped by lowering the minimum income threshold to $8,500.
Make Permanent the Expansion of CTC Eligibility to $3,000 and End Annual Increases
The American Recovery and Reinvestment Act recently passed by Congress lowered the minimum income threshold to $3,000 for the 2009 and 2010 tax years. A parent working full-time at minimum wage with two children would earn a credit of $1,750. In North Carolina, thousands of families would benefit. Advocates are calling on a new Congress and President to make this expansion permanent and end annual inflation increases.
Ending the annual increases for inflation would ensure that families whose real incomes do not rise would remain eligible for the tax credit each year.
Federal CTC Dollars Provide Local Economic Stimulus
The economic downturn and rising costs of gas and food threatens the economic well-being of
North Carolina's children, households and communities. Making permanent the expanded eligibility for the federal CTC would provide a much-needed economic stimulus to nearly 380,000 households in
North Carolina and their local communities. As of 2005,
North Carolina's communities received $894 million in federal Child Tax Credit dollars. Lowering the income eligibility threshold to $3,000 would bring in millions more.
Child Tax Credit Dollars to
North Carolina by Zip Code, 2005
What You Can Do
Call or write your Representative and Senators and ask them to make permanent the recent expansion of eligibility for the federal Child Tax Credit to $3,000 and end annual inflation increases.
