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Up To $2,000 Child Tax Credit Proposal For Americans; See Who Qualifies!

Child Tax Credit Proposal
Up To $2,000 Child Tax Credit Proposal For Americans; See Who Qualifies! (PHOTO: Chapman McAlpine Law)

A group of three House Democrats has proposed a bill that includes a $2,000 “baby bonus” and the reinstatement of the expanded child tax credit for American families, GoBankingRates reported.

Child Tax Credit Proposal

Up To $2,000 Child Tax Credit Proposal For Americans; See Who Qualifies! (PHOTO: Forbes)

Up To $2,000 Child Tax Credit Proposal

Representatives Rosa DeLauro, Suzan DelBene, and Ritchie Torres introduced the bill as part of an effort to revive the provisions outlined in the 2021 American Rescue Plan Act. The initial act provided eligible households with an additional $250 to $300 per month for each qualifying child. However, the program expired in 2021, and previous attempts to reinstate it have been unsuccessful.

The newly proposed legislation seeks to make the expanded child tax credit a permanent fixture. Moreover, it includes an increase in the credit to $2,000 in the month a baby is born.

For instance, a child born in January could potentially qualify for up to $5,300 in total benefits for the year, which would then decrease to the standard $3,600 in subsequent years.

The bill aims to provide families with financial support during a child’s early years but acknowledges that the bonus diminishes over time. The total lifetime benefit per child remains consistent as the monthly credits cease once the child reaches 18 years of age.

Although the baby bonus feature is not present in previous versions of the bill or its Senate companion, which also proposes an expansion of the child tax credit, there might be room for compromise.

READ ALSO: Monthly Child Tax Credit To Be  Permanent? – Here’s What You Need To Know!

Child Tax Credit Proposal

Republicans in Congress are seeking to pass the Child Tax Credit proposal and view the expanded child tax credit as a potential bargaining chip in negotiations. While it remains uncertain whether Republicans will support the baby bonus legislation, there could be opportunities for cooperation given the differing priorities of the parties.

During a recent debate in the Ways and Means Committee, the baby bonus did not come up when Representative DelBene attempted to introduce it as an amendment to the GOP tax bill. Her amendment was deemed “nongermane,” and Republicans rejected attempts to overturn the ruling.

The fate of the baby bonus and the expanded child tax credit will likely depend on ongoing negotiations and the willingness of both parties to find common ground on tax-related issues.

READ ALSO: What Is Additional Child Tax Credit And How To Qualify For The Program

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