NEARLY 200,000 households will benefit from new tax credit checks valued at $ 1,000.
Low-income Connecticut residents may be eligible to receive the checks.
Connecticut Gov. Ned Lamont announced on Dec. 29 that the state’s tax services department was tasked with retroactively increasing the earned income tax credit (EITC) for 2020 to 41.5 percent.
It was previously 23%.
The increase means that 198,708 households will receive an additional check.
However, the amount will vary depending on need, as well as the size of the household’s federal credit.
The IRS calculates this amount based on the taxpayer’s income, marital status, and number of children.
For example, a single parent of two children at the federal poverty line who received a state credit of $ 1,246 in the spring will now receive an additional $ 1,002.
Mr Lamont highlighted the ongoing Covid pandemic and the fact that many low and moderate income families need help.
“The EITC encourages work, strengthens economic stability and uplifts generations to come. Ultimately, these tax credits improve entire communities because those dollars are reinvested in our local economy,” he said. stated in a press release.
“I thank the exceptional Congressional delegation from Connecticut and our partners in the US Department of the Treasury for giving us the tools we need to improve credit last year during this time of economic uncertainty for so many. “
Read our live blog on Stimulus Controls for the latest updates on relief from Covid-19 …
Who is eligible for the check tax credit?
Low and moderate income families who earned up to $ 56,844 in 2020 and applied for this year’s EITC will receive a tax credit check.
The check will provide more support instead of the federal child tax credit, which has not been renewed for 2022.
The Child Tax Credit has helped lift children and families out of poverty by providing monthly payments of up to $ 300 per child.
Connecticut households receiving the EITC contain more than 220,000 children, according to the governor’s office.
When will they be paid?
The new tax credit checks will cost about $ 75 million.
The funds will be covered by the state’s $ 1.38 billion Coronavirus Relief Fund.
The fund was made available through the federal CARES law, which was passed in March 2020.
According to the governor’s office, the Department of Tax Services aims to have checks issued by the end of February.
We explain which states have received an extension to file their taxes in 2022.
We also explain how to check the status of your unemployment tax refund.