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Title: An Early Look at the Child Tax Credit Changes in the Tax Relief for American Families and Workers Act of 2024 | American Enterprise Institute

Citation Type: Miscellaneous

Publication Year: 2024

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Abstract: The Tax Relief for American Families and Workers Act of 2024, which the US House of Representatives passed on January 31, 2024, and the Senate is now considering, would make important changes to the child tax credit (CTC) if enacted. The legislation would increase CTC payments for families with lower earnings, apply a one-year “lookback” provision to the refundable credit’s earnings test, and begin increasing the maximum benefit with inflation. We first summarize how this legislation would affect benefits for families based on their marital status, number of children, and earnings. Then we discuss how it would affect work and marriage incentives. We conclude by arguing that more research is needed to inform how behavioral responses to these changed incentives would ultimately shape the legislation’s effects on employment, marriage, and family well-being.

Url: https://www.aei.org/research-products/report/an-early-look-at-the-child-tax-credit-changes-in-the-tax-relief-for-american-families-and-workers-act-of-2024/

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Authors: Cornith, Kevin

Publisher: AEI

Data Collections: IPUMS CPS

Topics: Family and Marriage, Labor Force and Occupational Structure

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