The proposed expansion of the Expanded Child Tax Credit in 2024 could offer significant financial relief to millions of families across the United States. The Tax Relief for American Families and Workers Act of 2024 aims to increase the maximum refundable amount per child over the next three years, pending approval by the Senate and subsequent enactment into law.
Expanded Child Tax Credit 2024 Parameters
The bill, which has already cleared the House of Representatives, seeks to address the economic challenges faced by lower-income families, particularly in the wake of the COVID-19 pandemic.
The proposed changes to the Child Tax Credit would span the tax years 2023, 2024, and 2025. Families could potentially claim the expanded credit during the 2023 tax season. Unlike the previous pandemic-related adjustments, the new rules would adjust the maximum refundable amount per child gradually.
For tax year 2023, it could rise to $1,800 per child, increasing to $1,900 in 2024 and $2,000 in 2025, with adjustments for inflation in the latter years. While part of the credit remains nonrefundable, the expansion aims to provide more accessible financial support to eligible families.
READ ALSO: Alabama Lottery Bill: A Historic Leap Towards Legalized Gambling in the Heart of the Deep South
Implications for Lower-Income Families
The proposed Expanded Child Tax Credit 2024 targets families with lower incomes, intending to alleviate financial burdens and reduce child poverty rates. By increasing the maximum refundable amount and considering the number of qualifying children, the revised credit structure could offer substantial benefits to eligible households.
According to estimates, up to 16 million children from low-income families could benefit from the enhanced credit in its inaugural year, providing crucial support to those who need it most.
READ ALSO: Collective Abundance Fund: Bringing Prosperity to Indigenous Communities