Senate Gridlock Stalls Child Tax Credit Expansion, Leaving Families in Limbo

Advocates Rally for Child Tax Credit Boost as IRS Prepares for Potential Changes

According to CBSNEWS, the expected expansion of the federal Child Tax Credit, which could have helped many impoverished children didn’t happen before the April 15 tax deadline. The Tax Relief for American Families and Workers Act of 2024 which would have raised the maximum refund for each child to $1,800 is stuck in the Senate. Senator Josh Hawley said it’s unlikely to pass. Tax experts say it’s risky to wait to file taxes hoping for changes in the law. Even though you can ask for an extension until October 15, it’s better not to wait too long.

Groups like the National Parents Union are still pushing for the bill to move forward. If the expanded Child Tax Credit becomes law after people file their taxes, the IRS will make changes automatically. Right now, the Child Tax Credit is $2,000 per child for 2023. It’s refundable up to $1,600 per child, meaning families can get a refund even if they don’t owe any taxes. This credit can be a big help to families with low incomes.

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IRS Readies for Potential Changes to Child Tax Credit Amid Advocacy Efforts

Furthermore, while the National Parents Union and similar groups continue to advocate for the bill’s progress assurance that if the expanded Child Tax Credit is approved after taxpayers have already filed, the IRS will adjust accordingly. For the 2023 tax year, the Child Tax Credit stands at $2,000 per child, with a refundable portion of up to $1,600 per child. This means that families can receive a refund even if they haven’t paid any taxes offering significant assistance particularly to those with lower incomes.

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