As Congress continues to debate the scope of tax reform (including the extension of expiring Tax Cuts and Jobs Act provisions) what’s the fate of the Child Tax Credit (CTC)? Through 2025, for each child under age 17 at the end of the tax year, eligible taxpayers may be able to claim a $2,000 credit. The CTC is also partially refundable to the extent of 15% of a taxpayer’s earned income in excess of $2,500. Without congressional action, the CTC is scheduled to drop to $1,000 per qualifying child beginning in 2026. Republicans are discussing the idea of expanding the CTC. One Senate tax writer said that a tax reform package would “likely” include a CTC expansion. Stay tuned.
Our Blog 