The child tax credit could be worth over $2000 under Republicans spending plan but millions of families wouldn't benefit

[BumRushDaShow]

Source: NBC News/CNBC

June 26, 2025, 5:13 PM EDT / Source: CNBC


Both the House and Senate versions of the budget reconciliation bill include an increase to the child tax credit, but the House’s version gives a larger payout to families. The child tax credit is a partially refundable tax credit available to taxpayers with children or dependents under age 17. Parents and guardians earning $200,000 a year or less are eligible to claim the full $2,000 credit per child through tax year 2025.

Without new legislation, that limit will revert to $1,000 per qualifying child after the expiration of the 2017 Tax Cuts and Jobs Act in 2025. Congress is trying to increase the maximum credit amount through its budget reconciliation process, but the chambers differ on proposed maximum amounts. The House proposal would increase the maximum credit to $2,500 per child, while the Senate’s version provides up to $2,200 per qualifying dependent.

Under the House’s plan, the $2,500 limit would remain in place until 2028, then drop to an estimated $2,100 and be indexed for inflation in subsequent years, according to the Tax Policy Center. The Senate’s plan would also adjust the maximum credit amount for inflation after 2026. Both proposals keep the maximum refundable portion of the credit at $1,700.

Regardless of the bill’s final maximum credit figure, an estimated 17 million children still wouldn’t qualify for the full benefit, according to an analysis by the Center on Budget and Policy Priorities.

Read more: https://www.nbcnews.com/business/personal-finance/child-tax-credit-republican-spending-plan-some-families-left-out-rcna215263

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Full headline: The child tax credit could be worth over $2,000 under Republicans' spending plan — but millions of families wouldn't benefit

Link to Center on Budget and Policy Priorities PRESS RELEASE - Senate Republicans Leaders’ Plan Doubles Down on Disastrous House Path: Higher Costs for Families, Millions More Uninsured People, and Children Without Enough to Eat

[Lonestarblue]

1. The reason so many parents would not qualify is the earnings requirement that leaves out poor people.

I don’t remember the exact salary requirements, but I think it might have started around $60,000 to be eligible for full benefits. Even with both parents working full time at minimum wage jobs, they won’t make $60,000. So once again, Republicans shaft the poor while doing very little for the middle class and giving huge benefits to the rich.

[progree]

2. earning $2,500 ...

From the article,

Regardless of the bill’s final maximum credit figure, an estimated 17 million children still wouldn’t qualify for the full benefit, according to an analysis by the Center on Budget and Policy Priorities (https://www.cbpp.org/press/statements/senate-republicans-leaders-plan-doubles-down-on-disastrous-house-path-higher-costs).

That’s because the child tax credit isn’t fully refundable. As of 2025, families who who don’t owe income taxes and earn less than $2,500 cannot claim any portion of the child tax credit. Those earning more than $2,500 may qualify for the additional child tax credit — the refundable portion of the credit worth up to $1,700. Families with incomes over $2,500 can receive up to $1,700 as a refund if the rest of the child tax credit covers their tax liability.

Around 2 million children don’t currently qualify for any of the child tax credit because their families earn less than $2,500, according to the Tax Policy Center (https://taxpolicycenter.org/taxvox/17-million-children-low-income-families-will-not-receive-full-child-tax-credit-2025) . Another 15 million receive some, but not the full credit, because their families make more than $2,500, but not enough that their income taxes exceed the amount that enables them to claim the full credit.

I haven't checked out the links, maybe they have some lovely graph or table that makes all this clear.

About 20 years ago, I had a friend with a young child who made just $16,000 one year - she got a huge Earned Income Tax Credit plus the full child tax credit at the time ($1,000), even though she paid in no taxes during the year (no withholding, no estimated taxes, no payroll tax nada; she was self-employed). They subtracted out what she owed in FICA taxes (Social Security and Medicare taxes, about $2,500), but there was still like $900 left over that she got as a check. (note to self: ref 2 2 . A I M )

Edited to correct the figures in the last paragraph.

[BumRushDaShow]

3. On CBPP's site, they had a barchart done in Sept 2024

From here - https://www.cbpp.org/blog/expanding-the-child-tax-credit-should-be-a-top-priority-in-2025-tax-debate



Also found this from 2023 which talked about the effect of the pandemic "expansion" of this that was allowed to expire - https://childrensadvocates.org/the-case-for-a-state-child-tax-credit/

[progree]

5. Whew! Thanks for the research, wow! /nt

[BumRushDaShow]

6. Democrats and many orgs have been trying to get the pandemic EITC expansion

put back in place because it made a huge impact and was popular. But the GOP is still trying to pay for their 2017 tax law extension and will finagle around with anything they can get their hands on!

[twodogsbarking]

4. Stop with the tax credit bullshit. If they need things provide them. Stop involving the tax system.

[Brainfodder]

7. 2000 aint enough, even when I was a kid.

Its as if these rich pricks think this money is theirs, yet they try the hardest to avoid kicking in?

The dynamic is greed, when will they get punished for their shameful sharing BS, but for example if you're a bank, whoa, how can we help you? Big Oil and Big Pharma getting subsidized by us, but who do they fuck over $ wise?

[Wiz Imp]

8. What Happened to Trump's Proposed $5,000 Child Tax Credit?

https://www.rstreet.org/commentary/trumps-proposed-5000-child-tax-credit-analyzing-various-approaches/

President Donald J. Trump’s proposal for a $5,000 Child Tax Credit (CTC) has sparked interest, though details remain scarce and largely undiscussed. This post delves into possible ways this campaign pledge could take shape, focusing on critical design choices regarding how benefits might phase in and out. These decisions will be pivotal in shaping the CTC’s impact on household income, poverty reduction, and work incentives, as well as its overall cost to taxpayers. Exploring various implementation scenarios, this analysis will shed light on the potential trade-offs and outcomes of this significant policy proposal.

[Wiz Imp]

9. A Reminder that Kamala Harris proposed a child tax credit of $6000

https://www.cbh.com/insights/articles/child-tax-credit-expansion-trump-vs-harris-proposals/

Harris plans to extend the child tax credit to $6,000 for newborns, $3,600 for children ages one to five and $3,000 for children five and older. No income threshold has been specified in her plan for the CTC.

“We know young families need support to raise their children,” Harris said during the Sept. 10 presidential debate. “And I intend on extending a tax cut for those families of $6,000, which is the largest child tax credit that we have given in a long time. So that those young families can afford to buy a crib, buy a car seat, buy clothes for their children.”