Child tax credit: What are the changes Trump could make?
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At this time, the child tax credit hands families a $2,000 discount on their tax bill for every child under the age of 17 that they care for. With President Donald Trump’s return to the White House, there may be some changes made to the child tax credit.
Under the 2017 Tax Cuts and Jobs Act, the child tax credit has been capped at $2,000 per eligible child, double that of the 2016 tax year. During the pandemic, that figure was up to $3,600. With Trump’s tax legislation set to expire at the end of this year, what will happen to the child tax credit remains unclear.
“There is bipartisan support to keep the Child Tax Credit at $2,000, so that provision will most likely be extended,” he added. “Should that not occur, then as 2025 winds [down] taxpayers with children should evaluate whether to increase income tax withholding or estimated tax payments.”.
The House Ways and Means Committee held a hearing this month, where Pennsylvania Republican Rep. Brian Fitzpatrick noted that the credit helps about 40 million families each year. He also invited Virginia mother Margaret Maple to speak at the hearing.
“As a stay-at-home mom and raising kids at home, there’s a lot of pressure at every angle, and a big one is financial,” she said, according to Nexstar. “It influences your marriage. It influences all your decisions, especially grocery shopping and trying to meet [the] needs [of] your growing family.”.
