Newsbreak: Massachusetts Governor’s $742M Tax Relief Package to Provide Aid for Families, Seniors, Renters and Farmers

Good news for Americans who are struggling with the rising cost of living. A tax relief package worth $742 million has been proposed by Governor Maura Healey of Massachusetts and Lieutenant Governor Kimberley Driscoll. The plan aims to provide aid to seniors, families, renters, and farmers, impacting more than one million Americans.

One of the key provisions of the proposal is the establishment of a Child and Family Tax Credit (CFTC), which would combine the Household Dependent Tax Credit and the Dependent Care Tax Credit, as reported by Anthony Russo of The US Sun on February 28, 2023. The CFTC would eliminate the cap on dependents and boost the amount that families can claim, making it worth $600 for each eligible dependent. Children under 13, those with disabilities, and senior dependents who are at least 65 years old would qualify.

Residents in the state who can claim the Senior Circuit Breaker would also benefit from the proposal, which would boost the credit to $2,400 from the current $1,200 for 2022. Additionally, eligible residents would be able to deduct 50% of rent worth up to $4,000, benefiting 880,000 people, according to The US Sun.

To become law, the package needs to be passed by the Senate and House in the state. Meanwhile, those who haven’t filed federal taxes yet for 2022 should keep in mind the child tax credit, which is only worth $2,000 this year as the expanded version expired. Qualifying parents must have a modified adjusted gross income of $200,000 or less to claim the full amount.