U.S. Taxpayers To Get More Money This Year?

Photo by Jessica Rockowitz on Unsplash

(TargetLiberty.org) – If former President Donald Trump’s tax deal manages to pass through Congress, then the majority of taxpayers could see an increase in the child tax credit. However, currently, the bill is facing some opposition. 

The Tax Relief for American Families and Workers Act was passed by the House in late January in a 357-70 bipartisan vote. However, the momentum that the act had previously gained faltered as it remained stalled in the Senate with the tax filing season fast approaching in roughly a month. 

The child tax credit is currently at $2,000 for each child, however part of that is not refundable. If the bill passes it is going to incrementally increase the credit amount that is refundable bringing it up to $1,800 for the 2023 tax season. The amount would be increased to $1,900 for 2024 while it would reach $2,000 in 2025. The bill also includes an adjustment to topline credit that is connected to the inflation rate. 

The bill has faced some opposition from the Senate GOP who have compared the refundable credit to welfare and argued that this bill would allow parents to use their earnings from previous years to receive larger credit. 

In a statement, Senate Finance Committee Ranking Member Mike Crapo (R-Idaho) noted that this bill would give people the right to refundable credit even when they have zero annual earnings, which goes against the longstanding policy that had been used. He proceeded to call for a number of modifications that would potentially further delay the bill and not make it applicable to the 2024 tax filing season.

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