The US House of Representatives recently passed the Tax Relief for American Families and Workers Act of 2024, a bill that aims to boost the child tax credit for lower-income families with children. If signed into law, this significant legislation could benefit millions of children in low-income households by increasing the maximum refundable amount per child over the next three years.
Revolutionizing Child Tax Credit: Boosting Support for Millions of Families in 2023-2025!
The proposed changes to the $2,000 boosts child tax credit would extend over the tax years 2023, 2024, and 2025, effectively boosting the child tax credit for eligible families. The maximum refundable amount per child would rise from $1,600 to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025, with adjustments for inflation. This boost aims to help around 16 million children from low-income families in the first year alone, truly emphasizing the positive impact this legislation brings.
Unlike the previous pandemic-related child tax credit, the new plan does not involve monthly advance payments. Instead, families would claim the credit when filing their tax returns, receiving the money owed through their tax refund or using it to offset any tax liability. This streamlined process aims to make the boosted child tax credit more accessible and straightforward for eligible families.
Supporters of the bill highlight how it addresses criticisms of the former child tax credit, which sometimes fell short of reaching children in the lowest-income families. The new rules aim to provide more money to families with multiple children, taking into account the number of qualifying children when calculating the credit amount. This approach not only boosts the child tax credit but also ensures that larger families receive proportionate financial support.
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Fate of Proposed Child Tax Credit Boost Hangs in the Balance
To qualify for the new child tax credit, families must meet similar eligibility requirements as the existing credit, including a modified adjusted gross income (MAGI) of $200,000 or less ($400,000 for joint filers), a child under the age of 17, and other criteria.
Although the House has approved the bill, its fate in the Senate remains uncertain. Senate Majority Leader Chuck Schumer supports the bill, and President Biden has expressed commitment to the Boosts Child Tax Credit. However, challenges in the Senate legislative process may impact the bill’s progress, ultimately determining whether this significant boost to the child tax credit becomes law.