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Legislation would establish tax credits for those who care for children and vulnerable
JEFFERSON CITY, Mo. — House Minority Leader Crystal Quade, D-Springfield, has filed legislation to establish three new state tax credits. House Bill 2643 includes the Missouri Child Tax Credit Act, a caretaker tax credit and a tax credit for Missourians who receive assistance from those caretakers.
Quade said the first component of the bill is designed to support families who currently live in Missouri and attract more new families to the Show-Me State.
“Economic difficulties like student debt, high home prices, comparatively low incomes and the lingering financial effects of the Great Recession and COVID-19 pandemic have made the prospect of starting a family seem like a lofty goal for many younger adults,” Quade said. “The Missouri Child Tax Credit Act will make that dream more realistic by alleviating some of the cost of having a child. It provides much-needed tax relief to working class families while also encouraging younger Missourians to start families in our state.”
The Missouri Child Tax Credit would provide a refundable tax credit for each child listed as a dependent on a federal tax return. A taxpayer would receive $1,800 for each child under the age of six, and $1,500 for each child aged 6-17. Taxpayers could also choose to claim that sum when filing their tax return, or they could receive it in monthly disbursements.
The two other components of HB 2643 would establish a caretaker tax credit, as well as a tax credit for those who receive assistance from caretakers. The caretaker tax credit would provide $5,000 to any individual who provides care for 10 or more hours per week to a qualified recipient of care, namely a person over 65 years of age or with mental or physical disabilities that requires assistance in performing everyday tasks, such as cooking, cleaning, bathing, scheduling appointments and so on.
The care receiver tax credit, the final piece of the bill, would also allow anyone who qualifies as a recipient of care in the caretaker tax credit to receive a refundable $5,000 tax credit. This recipient cannot receive MOHealthNet benefits or have an adjusted income of $100,000 or more.
Mechanisms exist within the caregiver and care receiver portions of the bill to prevent fraud. Caregivers and receivers must sign affidavits under penalty of perjury assuring they either provide care or receive care for or as an eligible recipient.
“Our caregivers receive incredibly low salaries despite caring for some of our most vulnerable Missourians, and care receivers represent incredibly vulnerable populations who could use some assistance in getting what care they need,” Quade said.
Each of the bill’s three component parts includes a six-year sunset with the possibility of future reauthorization.
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