Republican Proposal Could Help Families Receive Thousands of Dollars
Some Republican lawmakers are seeking an increase in the child tax credit while scrapping other controversial tax benefits.
The “Family First Act,” sponsored by Sen. Jim Banks, R-Ind., and Rep. Blake Moore, R-Utah, would raise the credit to $4,200 for children under 6 years old and $3,000 for older children. Families can claim the credit for up to six children and would be “fully refundable.”
Notably, the legislation would add a $2,800 credit for pregnant women starting at 20 weeks. The credit amounts are expected to rise with inflation over time.
However, the bill would also scrap the “head of household” filing status and end the “additional exemption for dependents” and the State and Local Income Tax Deduction, which is often used by those in high-tax states.
Filers can deduct up to $10,000 from state and local taxes based on the 2017 federal law. Some Republican and Democratic lawmakers in high-tax states support the SALT deduction, whereas other lawmakers oppose it. (Read more from “Republican Proposal Could Help Families Receive Thousands of Dollars” HERE)
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