Expanded Child Tax Credit and New Pregnancy Credit, but Childcare Tax Break Ends
This Act restructures family tax benefits, introducing a higher and fully refundable Child Tax Credit (up to $4,200) and a new $2,800 credit for pregnant mothers (starting at 20 weeks gestation). Simultaneously, the law eliminates the Head of Household filing status and modifies the dependent care credit to exclude expenses for children under 18.
Key points
The Child Tax Credit (CTC) is expanded (to $4,200 for children under age 6) and moved to the section of fully refundable credits.
A new tax credit of $2,800 is introduced for pregnant mothers, available after 20 weeks gestation, requiring physician certification.
The 'Head of Household' filing status is eliminated from the tax code.
The credit for dependent care expenses is modified; expenses will only be taken into account for individuals who have attained age 18 and are physically or mentally incapable of self-care.
The limitation on the deduction for State and Local Taxes (SALT) is extended to taxable years beginning after December 31, 2025.
Introduced
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