A New Expanded Child Tax Credit Just Passed the House — Here's Who Could Benefit
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A bipartisan group of lawmakers is pushing a tax package that could expand the child tax credit as soon as this filing season.
Their bill — currently called the Tax Relief for American Families and Workers Act of 2024 — would increase access to the tax credit for lower-earning families that don’t have enough taxable income to fully capitalize on it under current rules. The House of Representatives passed the $78 billion proposal, which also includes tax benefits for businesses, on Wednesday in a 357-70 vote. It now heads to the Senate.
This wouldn't be the first time the child tax credit has been expanded.
In 2021, lawmakers upped the child tax credit to a maximum of $3,600 per child, increased the age limit and made it fully refundable, with half the sum available in advance monthly payments. But those changes were only for that tax year. According to the Center on Budget and Policy Priorities, the expiration of the expanded child tax credit was a major reason why the child poverty rate more than doubled from 2021 to 2022.
