Before Republicans take control of the House this year, Democrats have been attempting to extend the Child Tax Credit and make it permanent.
The Child Tax Credit (CTC) in the United States will revert to pre-pandemic levels of $2,000 per child in 2022 and 2023, as it was eliminated from the 2022 IRA bill and the 2023 1.7 trillion dollar Omnibus government spending bill.
Child Tax Credit Expansion
It is anticipated that the choice to extend CTC saved around four million children out of poverty and benefited a total of 65 million children.
It was increased under the American Rescue Plan from $2,000 to $3,000 per child for children above the age of six and from $2,000 to $3,600 for children under the age of six, and its age restriction was raised from 16 to 17.
Read more: Why your Social Security benefits could be reduced to $2,500?
Will Non-filers Be Paid?
Families can get 15 percent of wages above $2,500, up to a maximum of $1,500 per child, and must have at least $2,500 in earned income to be eligible for any amount of the credit (referred to as the Additional CTC). In 2023, the refundable portion will increase to $1,600.
It must be emphasized that the CTC may only be claimed when a taxpayer files a tax return, as opposed to during the COVID-19 epidemic when American taxpayers received completely refundable payments.
Taxpayers claiming the Child Tax Credit must have a minimum income of $2,500 to be eligible for any portion of the benefit. If their Adjusted Gross Income (AGI) exceeds $23,000 for individuals and $29,000 for married couples filing jointly, filers are eligible for the entire credit.
The CTC, which is granted to tax-paying parents or guardians, applies to children less than 17 years old. To qualify for the full CTC, some income criteria must be satisfied.