From Yahoo Finance: 2025-06-06 07:01:00

The U.S. House of Representatives passed a bill increasing the child tax credit to $2,500 from the current $2,000. The bill must still pass the Senate to become law. The credit is set to expire at the end of 2025, but if the bill passes, the $2,000 minimum will become permanent. Requirements to qualify include the child being 17 or younger, a U.S. citizen, and having a Social Security number. Critics argue that the bill may exclude low-income families from the enhanced credit. The bill also raises the income threshold for full credit eligibility. Story Continues.

The bill allows for a $2,500 child tax credit from 2025 to 2028, not indexed to inflation. After 2028, the credit reverts to $2,000, indexed to inflation. The credit begins to phase out for higher-income taxpayers once MAGI exceeds $400,000 for joint filers or $200,000 for others. Critics point out that lower-income families may not qualify due to lack of tax liability. The bill must pass the Senate and could undergo revisions.



Read more at Yahoo Finance: How You Can Qualify For the Proposed $2,500 Child Tax Credit