If President Joe Biden has his way, people who get the child tax credit would see bigger returns during the 2018 tax season.
In his plan released on Thursday, President Biden proposes boosting the tax credit for children from $2,000 to $3,000 for children aged 6 and older, and from $3,600 to $3,600 for children under the age of 6. Parents received an additional child tax credit as part of Covid relief in 2021; however, despite Democratic efforts, the credit expired.
The proposed budget calls for universal, free preschool to be made available across the country. In addition, twelve weeks of subsidized parental leave are planned.
Child Tax Credit Are Still Available
Every tax season, Americans search for methods to reduce their tax payment or increase the amount of the refund they receive by claiming one or more of the IRS’s various tax credits.
One of the most commonly claimed tax credits is for kids, as the Child Tax Credit and the Tax Credit for Other Dependents, but are not the same thing despite appearances. Those who want to take advantage of the IRS’ Credit for Other Dependents on the returns they file may do so if they have children of any age, even those over the age of 18.
Dependents must possess one of the following: Social Security or an Individual Taxpayer Identification Number, even if they live in the taxpayer’s household but are not connected to the taxpayer. This credit begins to decrease if the taxpayer earns more than $200,000 per year, and it is increased to $400,000 for married couples filing jointly.
The Child Tax Credit and the Credit for Other Dependents cannot be utilized on the same dependant at the same time.