There’s a report by a researcher which states that almost one in a third children can be let out of the Child Tax Credit, which gets confirmed by Congress.
What is CTC?
Basically it is a federal tax benefit which is being aimed to help families, as the cost of raising children is raising significantly. For the children below 14 years of age, the credit is about $2000 per qualifying child, this was until 2024. And in the amount of $2000, about $1600 is refundable. This simply means that the family who is eligible is able to receive the credit as return, only if they do not owe any federal income tax.
There was an act that was passed by Republicans, namely one big beautiful bill act. There were some changes made today to child tax credit that are mentioned in one big beautiful act. It is being reported that CTC is going to rise from $2000 to $2200 in the beginning of the 2025 tax year.This will be there until the 2028 legislation expiry date. This legislation is being welcomed by many AmericanAs it will help them in many ways and this obviously happens when this provision turns into the law. On the other hand it will not likely be of any benefit to the low income citizens who are parents to their childs.
You should know!
It was being told by the Megan A Curran, to the reputed News handle, “Newsweek” that about 19.3 Million of children, would be left out from the complete $2200 as they reside in the Families who are not earning enough that the qualify for the new and obviously higher minimum threshold for income requirements. Megan A. Curran Is a reputed policy director on poverty and social policy at the University of Columbia.
A family with two children must be earring at least $41,500 in order to receive the full $2200 benefit from the department. According to Curran’s explanation of the policy, this is the new mandate made by the law. Additionally, if a family makes $36,000, they are able to receive the entire $2000 in credits under the present provision which holds merit.
Curran added, “It will also be much worse for these children because they are the same children of their respective parents who are now at high risk of losing their health care and food assistance as they will be forced out, and they do not see any positives from the CTC in this bill.”
“If we Need to keep a check on inflation, an amount of $2,500 must be given by CTC, so that the real value from 2017 and 18 can be maintained.”
What’s coming next?
According to some sources, the CTC boost is only temporary. And will cease in 2028 unless some lawmakers decide to extend it. If that happens so, it would be dropping back to the level of $2000.
