House passes bill that would extend child tax credit
Newsy
The proposal was part of a broader tax bill, and if signed into law, would provide millions of families additional funds this tax season.
The House of Representatives overwhelmingly voted in favor of H.R. 7024, a bill that would expand eligibility for the child tax credit.
Lawmakers approved the measure late Wednesday by a 357-70 margin, with Republicans voting in favor by a 169-47 margin and Democrats approving it by a 188-23 ledger. The bill now goes to the Senate, but its future in the chamber remains uncertain.
Currently, households earning $200,000 ($400,000 for couples) with children ages 16 and under are generally eligible for the full $2,000 amount, but only $1,600 of that amount is considered refundable.
The lawmakers' plan would include a phased increase to the refundable portion of the child tax credit for 2023, 2024 and 2025. Under the bill, the refundable portion of the child tax credit would increase to $1,800 for tax year 2023, $1,900 for 2024 and $2,000 for 2025.
It would adjust the tax credit for inflation starting in 2024. It would also provide flexibility for taxpayers to use either current- or prior-year income to calculate the child tax credit in 2024 or 2025.
