Why hasn’t the Child Tax Credit been approved for 2024? When will the Senate vote on it?
In February, the House of Representatives approved an extension of the Child Tax Credit for 2024. However, the Senate has not yet voted on the measure.
The Tax Relief for American Families and Workers Act continues to be stalled in Congress. In February of this year, the House of Representatives gave the green light to this bill that would extend the Child Tax Credit (CTC).
Currently, contributing parents and guardians can claim a maximum of $1,600 refundable per child. However, under the new bill, the reimbursable maximum would increase to $1,800 per child.
The proposal also gradually increases the maximum reimbursable amount per dependent for fiscal years 2023, 2024 and 2025, until it reaches $2,000. With this, the maximum refundable amounts would be $1,800 for 2023, $1,900 for 2024, and $2,000 for 2025. In 2024 and 2025, the figure would be adjusted according to inflation rates.
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Why hasn’t the Child Tax Credit been approved for 2024?
Although the legislation already has the approval of the Lower House, the Senate has yet to approve it, which is why the law has not been able to come into force. For this to happen, the Tax Relief for American Families and Workers Act of 2024 must be passed by both Houses of Congress and subsequently signed by President Joe Biden.
Unfortunately for many parent taxpayers, the bill has not yet been scheduled to be voted on in the Senate. As reported by the New York Times, this is because the Upper House of Congress has rejected some provisions of the measure, including the “retrospective review” which would allow taxpayers to use income from a previous year to increase the CTC amount.
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When could the CTC be approved?
Since the vote has not yet been scheduled in the Senate, there is no tentative date for the bill’s approval. However, since tax season came to an end on April 15, many taxpayers have begun to question what will happen to their respective credits if the law is approved in the coming months.
The IRS urges all taxpayers not to delay filing and paying taxes if they still haven’t done so. If the legislation is approved, the tax agency will make an automatic adjustment for taxpayers who have already presented and claimed the CTC.