The COVID Relief Package Must Include Much-Needed Tax Credit Expansions for Women & Families

Last weekthe House Ways and Means Committee advanced its plan to temporarily expand the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC) as part of the House’s COVID relief package. These federal income tax credits provide vital income support to families, lifting millions of people out of poverty every yearImproving these tax credits as part of the relief package would help the women and familiesand especially women of colorwho have borne the brunt of the COVID-19 health and economic crisis, and help pump money back into the economy 

The Child Tax Credit  

Children in low-income familiesdisproportionately children of color—have been devastated by this pandemic. In December 2020between 9 and 12 million children lived in a household without enough to eat. Making the CTC available to all families and increasing the amount of the credit would lift an estimated 4.1 million children out of the poverty and reduce child poverty by more than 40 percent. This expansion would most benefit the lowest-income families, providing a 37.4% income boost to families with children making $21,300 or less a year. And these families would not need to wait until they filed taxes to receive this much-needed support; the IRS would advance up to half of a family’s CTC amount on a monthly or quarterly basis, starting in July, under the Ways and Means plan 

The Earned Income Tax Credit  

Women were overrepresented among low-paid workers, even before the pandemic. Essential workers—disproportionately women of colorhave faced high health and economic impacts from the pandemic, working on the frontlines as home-health aides, cashiers, and food servers. However, many of these workers receive little to no benefit from the EITC, because working people without children are only eligible for a very small credit. Expanding and increasing the EITC for workers not claiming children would provide much-needed support to 17.4 million adults, including 4 million Latinx and 3 million Black workers. The Ways and Means plan would also extend the credit to both younger and older workers than under current law 
In addition to the CTC and EITC expansions, the House plan would give families direct payments of $1,400 per eligible personincluding childrenadult dependents, and those with Social Security Numbers in mixed-status families. The plan would also expand the Child and Dependent Care Tax Credit (most importantly, by making it refundable), providing more much-needed help to families who are struggling in the pandemicTaken together, these measures would provide a desperately needed income boost for the women and families hardest hit by the pandemic 
Tell your members of Congress that these House-proposed tax benefits are a necessary component of an equitable pandemic response and must be included in the COVID-19 package.