Hinterhaus ProductionsHow much the credit could be worth for familiesWhile less generous than the enhanced child tax credit enacted during the Covid-19 pandemic, the changes would boost the maximum refundable tax break to $1,800 per child for 2023, up from the current 2023 limit of $1,600.
The limit would increase to $1,900 for tax year 2024, and $2,000 for tax year 2025, along with inflation adjustments.
"It's extremely well-targeted to provide significant relief to millions of low-income families," said Chuck Marr, vice president for federal tax policy for the Center on Budget and Policy Priorities.
'Not much time in a best-case scenario'With proposed retroactive changes for 2023, there's pressure to enact the legislation by the opening of tax season on Jan. 29.
"But there's not much time in a best-case scenario," said Garrett Watson, senior policy analyst and modeling manager at the Tax Foundation.
Persons:
Chuck Marr, Garrett Watson, Watson
Organizations:
Hinterhaus, Center, Budget, Tax
Locations:
U.S