In a recent development from Washington, the House of Representatives has approved a significant tax bill with a price tag of $78 billion, aiming to bolster the child tax credit program. The bill’s provisions could have far-reaching implications for American families, particularly those in Massachusetts.
Under the proposed legislation, the maximum refundable tax break for eligible families would see a substantial increase. Specifically, the child tax credit would surge from $1,600 to $1,800 per child for the tax year 2023. Furthermore, this limit is set to rise once more for tax years 2024 and 2025.
The child tax credit expansion primarily targets families with an annual income of less than $200,000 for individuals and $400,000 for couples filing jointly. To qualify for the full child tax credit, families must have children aged 17 and under. Congressman Richard Neal, a vocal supporter of the bill, highlighted that this tax cut would have a positive impact on approximately 35,000 children in western Massachusetts alone. He emphasized that it would put more money directly into the pockets of average American families.