NEW tax refunds and additional child tax credits worth up to $175 per child are on the way for New Mexico residents.
The state has approved a bill to provide more supports for working families.
What did New Mexico lawmakers approve?
Although Congress has not extended child tax credits that were part of the American Rescue Act, the idea of monthly cash payments is being tested by more state lawmakers.
In New Mexico, on Monday, February 14, 2022, lawmakers passed a bill providing $380 million in tax relief.
The bill includes a new child tax credit of up to $175 per child. The tax credit depends on income level, although it is unclear who will qualify.
The bill also adds a gross receipts tax cut, a Social Security tax exemption and a $1,000 tax rebate for New Mexico nurses who worked during the Covid pandemic. .
Individuals earning more than $100,000 per year will not qualify for the Social Security tax exemption. For couples, the threshold is $150,000.
The bill also includes one-time tax refunds of $250 for individuals and $500 for joint filers.
Will Massachusetts do residents also receive payments?
Massachusetts lawmakers are also planning more cash payments to residents.
Massachusetts Governor Charlie Baker announced $500 payments to low-income essential workers.
The plan is known as the COVID-19 Essential Employee Premium Pay Program. Governor Baker announced this in December 2021.
To qualify, a person must have a household income at or below 300% of the federal poverty level and not have received unemployment compensation in 2020.
Payments will be made at the end of March.
Which child tax credits have expired?
The expanded child tax credit created in last year’s American Rescue Act has expired.
It increased the amount of assistance from $2,000 to $3,600 per child under age 6 and to $3,000 for children up to age 17.
In addition, families with dependents between the ages of 18 and 24 who are enrolled full-time in college were eligible for $500 per dependent.
It also provided monthly payments.
If families filed taxes in 2019 or 2020, or signed up for an IRS stimulus check, they got it automatically.
When did the expanded child tax credit expire?
The child tax credit expired on December 31, 2021, after Congress failed to renew the program or pass Build Back Better.
It is estimated that around 35 million American families have received the payments, which began to flow in July 2021.
Senator Joe Manchin of West Virginia opposed the extension.
Because Congress did not pass the extension, the child tax credit reverts to a lower amount as an annual credit in 2022.
Who was eligible?
The updated tax credit in 2021 was available to singles earning $75,000 or less, heads of households earning $112,500 or less, and married couples earning $150,000 or less.
Families earning more could still receive funds. The $2,000 credit is reduced by $50 for each $1,000 of income over the limit.
Families who elected not to receive monthly payments in 2021 will receive the lump sum in 2022 after their 2021 tax returns are processed.
Those who received advance monthly payments can also claim the remaining credits – up to $1,800 per child – by filing a tax return.
The Sun also explains when tax refunds will come out in 2022 and five ways to boost your tax refund.
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