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Biden’s Build Back Better Framework Offers Tax Credits and Federal Help – Here Are Ways You Will Benefit

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Al Drago / UPI / Shutterstock / Al Drago / UPI / Shutterstock

President Joe Biden’s $ 1.85 trillion Build Back Better Act framework includes tax credits, rebates, federal assistance, and incentives that millions of Americans can take advantage of.

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The bipartisan bill is expected to implement initiatives to rebuild physical infrastructure, significantly contribute to education and childcare, support new high-speed internet connections across the country, and progress towards related initiatives. to climate change.

Biden says the framework will put the United States “on track to meet its climate goals, create millions of well-paying jobs, enable more Americans to join and stay in the workforce, and grow our workforce. economy from bottom to top. “

With its estimated cost of nearly $ 2 trillion, here are the top ways the new expense bill will help you save big:

Childcare and preschool

Biden’s new bill would invest $ 400 billion for free preschool for more than 6 million children aged 3 to 4. It would also expand affordable child care for 90% of families with young children nationwide.

The White House estimates that this free preschool provision alone could save parents $ 8,000 a year. The initiative would also allow parents with an annual income of $ 100,000 and a toddler over $ 5,000 in child care cost savings per year.

Parents will be allowed to send their children to preschools of their choice, ranging from public schools to childcare services to Head Start.

Child tax credits and earned income tax credits

The framework includes $ 200 billion for child tax and earned income tax credits. One of the main areas of investment is the extension of the child tax credit for the coming years, mimicking the advance monthly payments that have been distributed in recent months. This year, families received between $ 250 and $ 300 per month, per child if they were eligible. More than 92% of American families with children under the age of 17 qualify for at least some benefits, and the credit is available to those who do not pay taxes. This year, monthly payments started in July and will last until December, and have already lifted millions of children out of poverty and food insecurity. The executive’s intention is to continue these monthly payments for 2022.

The earned income tax credit would also get an extension until 2022 and pay up to $ 6,728 depending on the status of the tax return and various other factors.

Elderly care

The framework includes $ 150 billion to provide affordable home care to seniors living with disabilities. The White House says about $ 5,800 is paid annually for just four hours of home care per week.

Health Insurance

The framework will expand Medicare coverage to cover hearing coverage so older Americans can access the affordable care they need, according to the White House.

Home Insurance

The framework will include $ 130 billion to reduce health insurance premiums for more than 9 million Americans, according to the White House. The program would essentially expand the premium tax credit, allowing individuals and families to receive a refund for health insurance premiums they purchase from the government’s Affordable Care Act Marketplace website. The White House says it could save up to $ 600 per person each year.

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Help for the down payment

The framework says Democrats will ask Congress to invest $ 150 billion to build, rehabilitate and improve more than one million affordable housing units. This would include a down payment fund that provides qualifying home buyers with $ 20,000 for a down payment.

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About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private banking and investment research. Georgina has written for Investopedia and WallStreetMojo.


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