The new Child Tax Credit (CTC) was recently approved in the state of Illinois. Families with children under 12 years of age will benefit. The maximum amount of money to receive will be $300.00 USD, depending on income capacity and the number of children in the home.
Starting next July 1, eligible parents in Illinois will be able to access this financial aid. State legislators conceived this credit to benefit low-income families that qualify for the federal Earned Income Tax Credit (EITC).
According to the agreed rules, married couples with annual income of up to $60,000 USD and singles ($50,000 USD) will receive up to $300.00 USD. Precisely, families that have three or more children will receive the maximum amount of money indicated. Households with two children will get $270.00 USD, and parents who have only one will get $170.00 USD.
Essential financial aid
The aforementioned Illinois child tax credit represents 20% of the state EITC. This allows taxpayers to claim a percentage of the federal EITC. Starting in tax year 2025, the credit will increase to 40% of the state EITC. Hence, the maximum amount available is raised to $600.00 USD per family.
Such financial assistance is essential for families facing financial difficulties. This money provides additional resources to cover expenses such as childcare and food purchases.
Every dollar of the child credit generates about $2.50 USD in economic stimulus. This automatically contributes to boosting the local economy.
By the way, a report from the Illinois Economic Policy Institute referred to the issue. “The economic impact of child tax credits is greater than the reduction in corporate income taxes or capital gains taxes.”
