Child Tax Credit Expansion: In addition to the fact that tax season is about to return, the Child Tax Credit is set to be expanded, and we are just a month away from experiencing it. The work that the House and Senate are doing on a proposed law would increase the amount of money that would be sent to families with children who have lower incomes in the year 2024. A piece of legislation that will be enacted in 2024 and will be named as the Tax Relief for American Families and Workers Act.
It is the intention of this piece of legislation to broaden the scope of the child tax credit by increasing the maximum amount of money that can be refunded for each kid for the following three years. The Internal Revenue Service stated in a statement on February 15 that it was closely monitoring the status of this law at the moment. The plan that they have is to move rapidly in order to put into effect the law that has been passed.
What is the additional amount of money that this legislation is providing to families?
Following the official passage of the Act on Wednesday, families with low incomes will receive an increase in the amount of money they receive. The $78 billion tax package that legislators from both parties approved included this enhancement of the child tax credit. Experts in public policy believe that it will be beneficial to millions of youngsters who come from households with poor incomes.
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If the proposal is passed into law, the eligible families will receive a tax reduction of around $680 for their taxes in 2023. The Urban-Brookings Tax Policy Center, which provides estimates, is supplying this information. Because to the American Rescue Plan, the maximum tax credit was increased from $2,000 to $3,000, which is equivalent to $3,600 per child on average. This payment is dispatched monthly to all households that meet the requirements.
To be more specific, the extension of the Child Tax Credit in 2024 will be of assistance to sixteen million children who are living in households with low incomes. Even though it does not cover everything that the legislators wanted it to include, it does accomplish a significant amount of work. Additionally, it is generally seen as a start in the correct path to assist children in the United States.
