(NEXSTAR) – President Trump i'm back to the White House, and Tax season is just a few days away Some Americans may be wondering how the 47th president's administration will affect the child tax credit.
Thanks to the Tax Cuts and Jobs Act of 2017, the Child Tax Credit is capped at $2,000 per eligible child, down from the $3,600 maximum per child during the pandemic, but less than the $3,600 maximum per child in 2016. This is twice the tax year.
But there is some uncertainty about Trump's credibility going into his second term, as his signature tax bill expires at the end of 2025.
“We need action from Congress, otherwise the child tax credit will go back to $1,000 per child,” Adam Brewer, a tax attorney with AB Tax Law, told Nexstar. “Because there is bipartisan support to keep the child tax credit at $2,000, this provision will most likely be extended. If not, as 2025 approaches, towns with children will have to Individuals need to consider whether to increase the amount of income tax withheld or the estimated tax amount.
At a January policy hearing in the House Ways and Means Committee, Rep. Brian Fitzpatrick (R-Pennsylvania) said the child tax credit benefits about 40 million families a year, and said that the child tax credit benefits about 40 million families a year.・Mr. Marple was invited to give a lecture.
“Being a stay-at-home mom and raising kids at home puts a lot of pressure on you in all areas, but a big one is financial. It affects your marriage, especially when it comes to grocery shopping and needs. It affects every decision you make, including trying to accommodate your growing family,'' Marple said. “The child tax credit is a powerful communication tool, allowing the government to communicate to people like me who work behind the scenes that the work I do to raise children is important to the stability and prosperity of our country.”
The child tax credit was a popular topic in the 2024 presidential election, with President Trump and then-Vice President Kamala Harris publicly supporting the tax cut, but disagreeing about who should receive it.
Despite economic prosperity, childhood poverty remains prevalent in the United States. The age group most likely to be encountered is children under 5 years oldpovertyandevictionMore than one in six young people under the age of 18 lives in:federal poverty line. Meanwhile, raising children is becoming increasingly expensive, with rising costs for groceries, childcare, and housing.
Currently, the child tax credit gives families a $2,000 discount on their child's taxes.tax billTo all children under the age of 17 in your care. Families who pay less than $2,000 in income taxes receive less benefits, and unemployed parents receive no benefits.
Harris had voiced support for a plan that would replace tax refunds with monthly payments and also cover parents who don't work and don't pay income taxes. Many Republicans have expressed support for the child tax credit, but have balked at giving benefits to non-working parents, with Sen. Mitch McConnell (R-Ky.) calling the plan a “working tax credit.” He likened it to “cash welfare rather than relief to people.”
The Associated Press contributed to this report.
