By Elena Patel and Natalie Gochnour
Originally published in the Deseret News.
Approximately 1 in every 10 Utah children 0-5 years of age lives in poverty. Without additional help, many of these 28,000 children will continue to suffer food insecurity, poor living conditions and lack of opportunity. Fortunately, Utah now joins with 13 other states, offering a state child income tax credit that helps low-income families pay for basic needs. This week, the Utah Legislature passed out of committee HB316, Child Tax Credit Amendments, by Rep. Mark Strong. If the bill passes, Utah’s existing credit will expand to include all children under 6 years old (Utah’s existing credit only includes 1- to 4-year-olds). Lawmakers would do well to seriously consider this bill.
A child tax credit provides an income tax break focused directly on children. The credit boosts after-tax income for qualifying families on a dollar-for-dollar basis. The extra funds help offset some of the many costs of raising children. Utah’s child tax credit allows eligible families to claim up to an additional $1,000 per child each year. When combined with the federal child tax credit (up to $2,000 maximum), the credits provide sizable income support for low-income families, reaching as high as $3,000 per child.
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