What Is the Child Tax Credit, and Will It Go Up?: QuickTake

A roughly $80 billion tax package under consideration in the US Congress includes an expansion of the child tax credit — a mechanism by which American families reduce the federal taxes they owe. The credit would become adjustable for inflation for tax years 2024 and 2025, and more of it would be refundable to families with low earnings. First, though, the tax package — which also includes renewing expired business tax breaks — must make it through negotiations and debate on Capitol Hill.

1. Who receives the child tax credit?

The credit dates back to the Taxpayer Relief Act ...