Some parents in New Mexico will start collecting child tax credits in July rather than waiting until the end of the year, according to state Rep. Javier Martínez (D-Albuquerque), who recently went on Matter of Fact TV to explain how guaranteed basic income could lift poor families out of poverty.
According to The Balance, guaranteed basic income is a proposed government-guaranteed income for each citizen. Also known as universal basic income, citizen's income and guaranteed minimum income. Guaranteed basic income is meant to provide enough income for citizens to cover the basic cost of living and provide financial security.
"Now, with regard to cash assistance or guaranteed basic income, the research is coming out," Martínez said. "We saw what [former] Mayor [Michael] Tubbs did in the city of Stockton, California. Now we have the city of L.A., making transformative investments in guaranteed basic income. I think that we will see, once that research is available, that in fact families have been uplifted, in a very positive and transformational way."
Martinez believes that the earned income tax credit could help millions of low- to moderate-income families.
"The earned income tax credit, which has been in the books at the federal level for a long time, is actually a Gerald Ford idea, believe it or not. It's one of the most proven poverty-alleviation measures in the country."
Earned income tax relief is provided through the Taxpayer Certainty and Disaster Tax Relief Act of 2020.
Starting next month, some parents will be able to start collecting child tax credits instead of waiting until the end of the year.
The Advance Child Tax Credit payments are an advance of a tax return commonly received by low- and moderate-income parents at tax time, according to the IRS website. While not a loan that requires being paid back, accepting the advance payments means getting less money back at tax season.
Parents with children under 18 that make less than a certain income qualify for the advance.
