A recent report from New Mexico’s Voices for Children highlights the importance of child tax credits in lifting children out of poverty. The report notes that these credits, including both federal and state-level programs, are effective in providing financial assistance to families who know best how to address their needs. In New Mexico, the state’s child tax credit program returned $132 million to almost 240,000 households this year. Studies show that generous tax credits can lead to long-term improvements in health, earnings, and school performance for children.
While the federal child tax credit had a significant impact on reducing child poverty during the pandemic, the report highlights that post-pandemic changes have resulted in some families being unable to access the full federal credit. This disparity means that low-income families in New Mexico are missing out on much-needed financial support while higher-income couples are receiving the full amount of the tax credit. The report emphasizes the importance of maintaining and expanding child tax credits to continue lifting families out of poverty and promoting the well-being of children.
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