From Time Inc.:

Lawmakers are proposing a tax package aiming to expand the child tax credit as soon as this filing season. This bill has support from a bipartisan group. The proposed changes would increase the maximum refundable amount to $1,800 per child for 2023, $1,900 for 2024, and $2,000 for 2025.

In 2021, the child tax credit was expanded, but those changes were only applicable for that year. Democrats have been pushing to revive it since then. The proposal, advanced by the House committee, would allow families with lower incomes to access a larger amount of the credit than currently available.

The proposed expansion of the child tax credit would increase the amount of the refundable credit, putting hundreds or even thousands of extra dollars back in some families’ pockets. Furthermore, other notable changes would allow families to use income from the previous tax year to calculate the refundable portion of the credit for the 2024 and 2025 tax years. However, it’s unclear if the bill will ultimately become law and if so, in what form.

Sen. Ron Wyden has expressed hope that the expanded child tax credit could be in place for the 2024 tax season. House Speaker Mike Johnson has not commented on when a possible vote would occur, although the White House has expressed support.



Read more: New Expanded Child Tax Credit Proposed: Who Would Benefit?