Finance US News

$2,000 Baby Bonus to Be Included as Part of Child Tax Credit Comeback; Are You Eligible?

U.S. legislators are insisting for the comeback of the $300 per month child tax credit that includes a $2000 baby bonus. About 250 lawmakers are supporting the plan to make the expanded child tax credit permanent under the American Rescue Plan. Apart from making the incentive permanent after its expiration in 2021, U.S. Representative and top Democrat on the budget-writing Appropriations Committee, Rosa L. DeLauro proposed the additional $2000 baby bonus for those who wants to have a baby.

Eligibility for a $2000 baby bonus

CT Insider reported that the $2000 baby bonus was introduced due to the declining birth rates across US especially in Connecticut and New England. The baby bonus aims to give incentives to family or couple who decides to have a baby. Parents will receive $2000 tax incentive for newborns and be eligible for approximately $5,300 for the first year of life and $3,600 the following year based on income, according to Al.

Baby bonus has never been included in any versions of the bill before. It has never been part of Senate companion bill either that includes child tax credit expansion. According to Go Banking Rates, baby bonus disappears as the child turns 18. But regardless, the incentives have helped support the family financially especially with ever child’s needs.

CTC expansion with $2000 baby bonus

In the process of putting back the child tax credit in American wallets, the plan introduces some changes as well apart from the additional baby bonus. In a report of USA Today, the new plan will no longer include income requirement from the full credit. There would also be a maximum child tax credit expansion to $250 per month. Young-child tax credit will carry on with $300 per month for children 6 years and below. Apart from emphasizing that the tax credit have helped the household with their needs, Rep. Suzan DelBene, calls out to her fellow lawmakers to support the plan that aims to give children a chance at success.

It is yet unclear whether the majority will approve the proposal for the CTC expansion with baby bonus as the topic was not mentioned during the debate in the Ways and Means Committee recently, according to Go Banking Rates.

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