A new version of the Child Tax Credit (CTC) could bring some relief for parents in the coming years, but not everyone will benefit. Two major proposals—one backed by former President Donald Trump and another from the Senate—aim to increase the credit up to $2,500 per child by 2028. But if your family does not meet certain IRS guidelines, you may miss out completely.
Who qualifies for the new child tax credit?
Both proposals come with very specific rules that decide who qualifies for the full amount of the credit. If you do not meet the set criteria, you might only get a partial benefit—or none at all.
Here is what you need to know:
- Minimum income required: Families must earn more than $2,500 per year to qualify for the refundable portion of the credit.
- Must have a valid SSN: Children without a Social Security Number will not be eligible, even if they previously qualified with an ITIN (Individual Taxpayer Identification Number).
- Filing requirements: You need to file a federal tax return and meet all eligibility rules under IRS standards.
This means low-income families, mixed-status households, or those without formal employment may not receive the full credit.
What are the main differences between the two proposals?
While both plans are focused on increasing support for families, they are built differently.
- Trump’s proposal: Known as “One Big, Beautiful Bill,” this plan increases the credit to $2,500 per child until 2028, then locks it in permanently at $2,000.
- Senate proposal: This version offers a $2,200 nonrefundable credit beginning in 2025, with yearly increases tied to inflation.
- Refundable cap: Both limit the refundable portion to $1,400, which is actually less than the current refundable amount of $1,700.
In short, while the credit amount might sound bigger, the refundable portion that low-income families rely on could end up being smaller.
How the changes affect low-income families
These new rules might feel like a step backward for many working-class families.
- Reduced benefits: While middle- and upper-income families may see as much as an $800 increase, lower-income families could only get about $350 more.
- Tighter rules on eligibility: The removal of ITIN eligibility and the $2,500 income rule will disqualify many families who are already struggling.
- Less refundable money: Even if you qualify, the portion of the credit you can actually receive as a refund may go down.
Imagine someone like Maria, a single mom working two part-time jobs. She has three kids, pays rent, and keeps food on the table. Under the new rules, she might not get the full benefit simply because she earns too little or one of her children has an ITIN instead of an SSN.
Who should check their eligibility now?
If you are a parent or guardian, now is the time to take a close look at your financial situation and tax filing status.
Ask yourself:
- Do my children have valid Social Security Numbers?
- Do I earn more than $2,500 per year in reported income?
- Am I up to date on my federal tax filings?
If you answer “no” to any of those, you could be one of the families left out when the new credit rules take effect in 2028.
Related article:
Can I request the ACTC if I do not qualify for the IRS Child Tax Credit (CTC)?
