Anti-poverty advocates press feds to protect Child Tax Credit, Earned Income Tax Credit from seizure for overdue debts
“More than 100 consumer groups, legal centers and anti-poverty advocates are urging lawmakers and the Biden administration to protect tax credits they say are critical for parents and low-income Americans, who could face a smaller refund this year if they owe the federal government any money.
The Internal Revenue Service can pull from tax refunds to cover taxpayers’ outstanding federal debts. The first half of the expanded Child Tax Credit — distributed in six monthly payments to millions of parents starting last summer — couldn’t be seized, but the second half of the credit and the Earned Income Tax Credit, which benefits low-income families, can be shaved or shorted entirely from tax refunds to offset federal debts.”