Millions of American families could receive an even larger tax cut if a new bill endorsed by President Trump becomes law. The Senate has passed the “One Big Beautiful Bill Act” with an expansion of the Child Tax Credit (CTC), and the bill now returns to the House of Representatives for its final approval.
Here’s what you need to know, explained simply:
What is the Child Tax Credit (CTC)
The CTC is a government incentive that assists families in paying for raising children.
In 2024, families can earn up to $2,000 per child under age 17.
That’s $1,600 of it refundable; even if you don’t owe taxes, you can receive some money back.
✅ New in Senate Bill:
- The new legislation raises the CTC to $2,200 from $2,000 per child.
- The added amount would rise annually by inflation
- Yet still, the refundable credit would be the same at $1,600.
In short, you receive more cash, but only if you are already eligible to receive the full credit.
Who stands to gain the most
- Middle- and high-income households: They are already qualified for the full $2,000; therefore, they will automatically qualify for the additional $200 per child
- Low-income households: Most of them will not gain from this because they earn below the threshold to qualify for the full amount, as is currently under existing regulations.
These could be part-time workers, minimum wage workers, or people employed in stable jobs.
As the additional $200 is not returnable, they won’t notice that extra money unless their income level is high enough.
How families might save
- A family with three children could save an additional $600 annually under this plan.
- Eventually, as the sum grows with inflation, the savings might be even larger.
- But keep in mind—this enhancement benefits only those already eligible for the full sum.
New restrictions on who may receive the credit
Now, families can qualify for the credit even if the children have Social Security numbers but their parents don’t.
Under the new bill, only parents or guardians with valid Social Security numbers may receive it.
That would essentially prevent undocumented parents from claiming the CTC—even if their children are U.S. citizens.
What people are saying
- The White House: Called the bill “the largest tax cut in history for middle- and working-class Americans.”
- The Center on Budget and Policy Priorities: Warned that 1 out of 3 children would be left behind due to their low-income family.
- Experts: Applaud increasing the credit as a positive—but it has to help all families, especially those who most need assistance.
What happens next
The bill now goes back to the House of Representatives.
If signed, it will be sent to President Trump’s desk to be signed into law.
If passed, families may start seeing the extra credit on their 2025 tax return (filed in 2026).
In a nutshell: If Trump’s “One Big Beautiful Bill Act” is passed into law, most families will get a higher Child Tax Credit, but some will not benefit equally.
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