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Permanent Tax Relief for Families: Child Tax Credit Changes

This act aims to make permanent certain temporary changes to the child tax credit. This means families with children can expect higher tax credits, impacting their household budgets. The changes also include new rules for child identification and income thresholds.
Key points
Increase of the child tax credit to $2,000 for each qualifying child and $500 for each other dependent.
Raising the income threshold for the full credit to $400,000 for joint filers and $200,000 for others.
Requirement to provide a child's Social Security Number (SSN), issued before the tax return due date, to claim the credit.
Possibility of indexing the child tax credit amount for inflation, to protect its value over time.
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Additional Information
Permanent Tax Relief for Working Families Act
Print number: HR 1380
Sponsor: Rep. Smith, Jason [R-MO-8]
Process start date: 2021-02-25