Trump’s spending bill boosts the maximum child tax credit to $2,200
On July 4, President Donald Trump signed the “Big Beautiful” bill on the law.
A provision is an increase in the maximum child tax loan and raises it from $ 2,000 per child to $ 2,200 per appropriate child. The 2017 tax deductions and the labor law temporarily raise the loan from $ 1,000 to $ 2,000, but it will end after 2025 without the Congress action.
Child tax loan is a definite tax loan for taxpayers with children or under the age of 17. Compliance requirementsHaving a social security number and living with taxpayers for at least half of the year. Trump’s legislation requires at least one taxpayer who claims that the loan has a social security number.
Parents and parents must earn $ 200,000 per year or less or 400,000 dollars for more or less or common files to request full loan for each dependent. The loan decreases by 5% for every $ 1,000 earned over these thresholds.
The returnable part of the loan, known as an additional children’s tax loan, is worth up to $ 1,700 in 2025. As of 2026, credit will be indexed for inflation.
According to the estimates of the Congress budget office, the expanded tax loan will cost the federal government about $ 817 billion in the next 10 years. In total, invoice Expected to add $ 3.3 trillion According to CBO, the federal exposure for the next 10 years.
Low -income families are out
Although the dollar amount is higher, the number of American families who see the benefit added will probably not grow, as the new legislation does not expand the rules of conformity. CTC increase will often benefit from medium and high -income winners who are entitled to the maximum amount.
Miguel Burgos, a certified public accountant and turbotax expert, tells CNBC’s Make Make. “The target of the taxpayers who will benefit from this loan should be almost as before.” He continued: “Only the loan cannot be returned to the non -return part.”
Currently, approximately 17 million children do not qualify for $ 2,000 because their families’ income is very low, Estimates from the Tax Policy Center. Approximately 3 million children who have previously been qualified for tax loans may lose access due to the need for parent social security number. Brookings Institute Analysis American community survey data.
In 2025, low-income taxpayers who are not indebted in taxpayers-often less than $ 2,500 per year may not claim any part of the book. If more winners include the rest of the loan, they may be entitled from the returnable part of the loan to $ 1,700.
In general, he says that taxpayers benefit from the advantage of receiving a child tax loan every year.
“Credit taxpayers are very relevant and makes a difference and [claiming] “he says.
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