Single Louisiana Parents Will Get Less Cash in July than Couples
Parents across Louisiana are patiently waiting for the federal tax credit advance that should be hitting bank accounts across Louisiana starting July 15th. If you haven't heard, the American Rescue Plan laid out plans to give parents of minors an advance on their 2021 child tax credit. Uncle Sam is set to send out payments of $300 per month for kids under 6-years-old and $250 for youngsters aged 6-18 - as long as they meet the requirements.
According to a report from NBC, an often overlooked portion of the plan means that single parents will have a tougher time of getting that help than married moms and dads. The income cutoff for receiving the maximum amount for married parents is $150,000 - if their combined income is any higher the payments get smaller. The income cutoff for single parents is an annual income of $120,500.
When you consider that there are no discounts for single parents when it comes to groceries, school related costs, medical care, extra-curricular activities, and the like - this problem becomes much clearer. When you crunch the numbers, a single parent of 3 pulling down $135,000 per year would receive about 10% less from this plan than married parents of 2 making a combined $150,000.
Reportedly, Democratic Representative Katie Porter of California is working with a group of politicians in Washington to correct this issue by putting the yearly income cutoff at $150,000 for all families.