Child Tax Credit 2024 Updates: Democratic Sen. Ron Wyden and Republican Rep. Jason Smith are leading legislators who have unveiled an unbiased tax plan that aims to enhance the Child Tax Credit (CTC) to benefit millions of American families.
The utmost refundable portion of the CTC is projected to increase from the current $1,600 per child to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025, according to the framework.
“Fifteen million kids from low-income families will be better off as a result of this plan, and given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead,” Wyden stated in a press release.
“The improvements this plan makes to the Low-Income Housing Tax Credit will build more than 200,000 new affordable housing units at a time when so many people in Oregon and across America are suffering from rising rents and home prices.”
In addition, beginning in 2024, the credit will be adjusted for inflation, and parents will be permitted to use income from the current or prior year to calculate the credit. The proposal prioritizes enhancing the program’s benevolence, specifically targeting low-income households that have multiple children, while also ensuring equitable distribution of benefits.
Child Tax Credit 2024: Which States Are Making Payments This Year?
Who will qualify for the financial assistance if the proposed legislation is passed?
The Center on Budget and Policy Priorities (CBPP) estimates that the proposed adjustments could benefit approximately 16 million children from low-income families and raise approximately 400,000 children above the poverty line in the first year.
A single parent with two children earning $13,000 could potentially double their credit, according to the CBPP analysis, while a married couple earning $32,000 could accrue $975.
Although the monthly CTC payments are not reinstated under the framework, they do offer an annual inflation adjustment that is advantageous to millions of families. As a bipartisan endeavor to address and improve the CTC, the proposal may have a positive effect on the rate of child poverty.
Child Tax Credit Bill: Potential Increase in Payments Revealed
