Changes to the child tax credit could earn you more money
A $78 billion deal is making its way through Congress right now, and it could provide serious relief to millions of lower-income families.
The Tax Relief for American Families and Workers Act of 2024 is seeking to expand two main areas: corporate tax breaks and the child tax credit. Retroactive to 2023, meaning the credit would be reported on 2023 tax returns, the expansion would raise the maximum refundable amount per child to $1,800. This would increase each tax year in accordance with inflation.
Not only will families be able to multiply the benefits per child, but they will be allowed to calculate their maximum refund amount based on the previous year’s earnings should their income drop during the tax year.
For those with dependents under 17 who own valid US social security numbers, this credit could be incredibly beneficial. The question is whether or not the legislation will make it through the Senate and the House by the official start of tax season on January 29th.
