ALBANY State Sen. Betty Little has joined her colleagues in proposing the 2013 Family Tax Relief Act. The plan would increase existing child tax credits and the state’s dependent exemption for income taxes, as well as restore funding for the STAR rebate check.
A family earning $55,000 with two children would see their state income taxes reduced about $1,000. A single parent with one child and an income of $45,000 annually would see tax savings of over $800 under the Senate plan.
Little said the plan is being forwarded to the state Assembly and the governor, while negotiations continue on the state budget
The Senate Republican plan would increase the dependent exemption from $1,000 to $2,020. The exemption was last increased in 1987. Their plan also would increase the dependent care credit, last increased in 1999, and raise the maximum child tax credit from $330 to $375 to adjust for inflation.
Additional relief would be provided by restoring $1.3 billion for the supplemental STAR Rebate Check Program, which was eliminated in 2009.