The Federal Child Tax Credit may increase for tax year 2024 after a bipartisan bill was passed through the House of Representatives. The House is controlled narrowly by Republicans, while the Senate and White House are obviously controlled by Democrats. Such a bill is likely to be pressed forward and become law. If the bill becomes law, it will go into effect in 2025 for the tax year 2024.
Major media outlets are reporting this potential increase as something that will not be. The child tax credit was increased during the pandemic from $2000 per child to $3200. That is not coming back anytime soon. The new bill has complicated metrics to determine the cash refund increase Americans would receive under the new law. Some estimates say Americans may receive an extra $600 in tax benefits under the bill, on average. That does not necessarily equate to cash in hand, although it may. Most people will probably not see much difference when it comes to actual cash refunds from the Federal Government under the new law.
SOURCES:
Child tax credit expansion could benefit millions of families
Calculate how much you would get from the expanded child tax credit – Washington Post
Who Qualifies for the Proposed Child Tax Credit and How Does It Work? – WSJ
House approves expansion for the Child Tax Credit. Here’s who could benefit. – CBS News
House passes bipartisan tax bill that expands child tax credit | CNN Politics
Visualizing Who Would Benefit From the Child Tax Credit Expansion – The New York Times
Congress’s child tax credit deal would lift 400,000 kids out of poverty – Vox
