$78 Billion Boost: Child Tax Credit Expansion to Lift Millions of Families in 2024
As tax season approaches, a significant update for families is on the horizon with the Child Tax Credit poised for expansion. The House and Senate have put forth the Tax Relief for American Families and Workers Act of 2024, promising increased support for lower-income families with children. This legislative move, closely monitored by the Internal Revenue Service since February 15, aims to enhance the financial well-being of millions by raising the maximum refundable amount per child over the next three years.
With the bill’s passage on Wednesday, low-income households are set to receive a substantial increase in their Child Tax Credit, thanks to a $78 billion bipartisan tax package. This reform is anticipated to benefit millions of children in need, offering an average tax cut of $680 for the 2023 tax year, as projected by the Urban-Brookings Tax Policy Center. The American Rescue Plan previously elevated the maximum tax break to $3,000 or $3,600 per child, up from $2,000, with payments distributed monthly to qualifying families.
This 2024 expansion targets 16 million children in low-income settings, marking a critical stride toward alleviating childhood poverty in America. Although it doesn’t fully encompass everything legislators aspired to achieve, the Child Tax Credit enhancement is heralded as a significant step forward. This development underscores a collective effort to provide much-needed relief and support to America’s future generations, demonstrating a commitment to improving the lives of children and families across the nation.
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