The Child Tax Credit (CTC) has been a cornerstone of US tax relief for families for years. With Donald Trump returning to the White House, discussions about the Child Tax Credit changes under Trump presidency have resurfaced. Let’s explore the recent updates, potential changes and what they could mean for families.
Recent Changes to the Child Tax Credit
In recent updates from the IRS children who turn 17 during the tax year will no longer qualify for the Child Tax Credit. Families with children born in 2008 or earlier should note this important adjustment when planning their taxes.
Currently, the CTC allows parents to claim up to $2,000 per eligible child under the age of 17. While this provides significant financial relief losing eligibility as children grow older may impact family budgets.
Here’s a quick overview of the current Child Tax Credit changes under Trump presidency structure:
| Criteria | Details |
| Maximum Credit Per Child | $2,000 |
| Age Limit | Under 17 at the end of the tax year |
| Income Limit (Single Filers) | Up to $200,000 |
| Income Limit (Joint Filers) | Up to $400,000 |
Trump’s Influence on the Child Tax Credit
The 2017 Tax Cuts and Jobs Act (TCJA) signed by Donald Trump doubled the CTC from $1,000 to $2,000 per child. However, this expansion is set to expire at the end of 2025 unless Congress takes action.
If the TCJA is not extended, the credit could drop back to $1,000 per child and income limits for eligibility could decrease. For example,
- Individual filers may see the threshold drop to $75,000.
- Joint filers could face a limit of $110,000.
Adam Brewer a tax attorney highlights the need for families to prepare: “Taxpayers with children should consider adjusting income tax withholding or estimated payments as we approach 2025.”
Political Debate on the CTC under Trump Leadership
The Child Tax Credit has been a hot topic in political discussions. During the 2024 presidential race Trump and Kamala Harris both supported the credit but had different views on its distribution.
Harris proposed monthly payments even for nonworking parents to combat childhood poverty. However, many Republicans including Senator Mitch McConnell opposed this idea labeling it “cash welfare.”
Trump on the other hand emphasized providing relief to working taxpayers aligning with traditional Republican values.
The Growing Cost of Raising a Child
As families navigate these changes the rising costs of groceries, child care and housing add more pressure. Childhood poverty remains a significant challenge in the US with children under five being the most vulnerable.
FAQs About Child Tax Credit Changes under Trump presidency
1. What happens if my child turns 17 during the tax year?
Children who turn 17 no longer qualify for the Child Tax Credit. However, they may still be eligible for other tax credits like the Other Dependents Credit.
2. Will the Child Tax Credit amount change in the future?
If the TCJA isn’t extended, the credit could drop from $2,000 to $1,000 per child starting in 2026.
3. How does income affect my eligibility for the Child Tax Credit?
Currently, single filers earning up to $200,000 and joint filers earning up to $400,000 qualify for the full credit. These limits may decrease if the TCJA expires.