The Child Tax Credit (CTC) has been a pillar for millions of American families, providing tax relief in a country where child poverty persists.
However, its future is uncertain, as the Tax Cuts and Jobs Act of 2017, signed during President Donald Trump’s first term, is set to expire in 2025. This legislation established a maximum credit of $2,000 per eligible child, a significant increase over the $1,000 cap in place in 2016, but lower than the $3,600 temporary award during the pandemic.
What will happen to Child Tax Credits in the Trump administration
With Trump back in the White House, many families are concerned about what will happen to this benefit if he serves a second term. Tax experts have warned that if Congress does not act to renew the law, the credit may be reduced again to $1,000 per child.
However, these experts note that there is bipartisan support for keeping the credit at $2,000, implying that an extension beyond 2025 is possible. Meanwhile, they advise taxpayers with children to review their withholdings or payments simultaneously, anticipating potential changes.
The impact of the CTC is significant. According to the most recent data, it is distributed to approximately 40 million families per year.
However, the current credit has some limitations, which have been criticized. For example, it is only available to families with sufficient income to pay taxes, excluding many who do not meet that requirement.
Furthermore, the benefit is not distributed equitably: those who pay less than $2,000 in taxes receive a reduced amount, while those who are out of work do not qualify. This has also been discussed in the halls of Congress in Washington, but no concrete results have been achieved.
Could Trump eliminate the CTC? This is what we know so far
For a few weeks, there has been speculation on social media that President Trump has established that those who receive child support cannot claim their children as dependents on their tax returns.
An Instagram post from January 20, which received over 10,000 likes in one week, contends that this alleged measure represents a significant change in tax law. This caused a stir, with thousands of comments asking for more information or expressing their concerns.
The claim is false, as there are no records of Trump making such a declaration, nor is there evidence of a change to the tax code imposing such restrictions. In addition, the original author of the claim later admitted that it was a disinformation campaign.
