A bill that passed the House of Representatives with a vote of 237-173 would increase the number of middle class Americans who would be able to take advantage of the child tax credit. However, President Obama has indicated that he will veto the legislation if it reaches his desk. Today, single filers who make up to $75,000 can claim the full credit while married couples who make up to $110,000 can claim the credit.
The bill would allow married couples making up to $150,000 to get the credit while indexing future income limits to inflation. In addition, the credit would rise from the current $1,000 to higher levels also indexed to inflation. The bill would also require those claiming the credit to have a Social Security number to be eligible.
This provision would deny immigrants who are in the country illegally to get the money, which some believe is nothing more than a government hand-out disguised as a tax refund. The portion of the existing legislation that gives refunds to low-income claimants is due to expire in 2018. While the bill passed by a relatively wide margin in the House, it is unlikely to pass in the Senate.
The child tax credit represents an effort to provide tax relief for those who are trying to raise children on a limited or relatively modest income. Those who think that they may qualify for the credit or have mistakenly claimed the credit despite being ineligible to do so may wish to consult with a tax attorney. The attorney may be able to clarify the issue or help a taxpayer file an amended return with the IRS.
Source: SF Gate, "House votes to boost child tax credit for some", July 25, 2014