The Child Tax Credit (CTC) has been a pillar for millions of families in the United States, serving as tax relief in a country where child poverty remains a persistent problem.
However, its future is uncertain, as the Tax Cuts and Jobs Act of 2017, signed during the Donald Trump’s first administration, is scheduled to expire in 2025. This legislation established a maximum credit of $2,000 per eligible child, an increase considerable compared to the $1,000 cap in effect in 2016, although lower than the $3,600 temporarily awarded during the pandemic.
What will happen to Child Tax Credits in the Trump administration
With Trump once again installed in the White House, many families are attentive to what could happen to this benefit if he reaches a second term. As tax experts have warned, if Congress does not take action to renew the law, the credit could be reduced again to $1,000 per child.
However, these experts also point out that there is bipartisan support for maintaining the credit at $2,000, which suggests that an extension beyond 2025 is possible. Meanwhile, they advise taxpayers with children to review their withholdings or payments in parallel, anticipating possible changes.
The impact of the CTC is significant. Approximately 40 million families have received it each year, according to the most recent data. However, the current credit has certain limitations that have been criticized. For example, it is only accessible to families that generate enough income to pay taxes, which excludes many that do not meet that threshold.
Additionally, the distribution of the benefit is not equitable: Those who pay less than $2,000 in taxes receive a reduced amount, and those who are out of the labor force do not qualify at all. This has also been discussed in the halls of Congress in Washington, but nothing concrete has yet been achieved.
Could Trump eliminate the CTC? This is what we know so far
The claim has been circulating on social media for a couple of weeks that President Trump established that those who receive child support cannot claim their children as dependents on their tax returns.
An Instagram post from January 20, which garnered more than 10,000 likes in one week, argues that this supposed measure represents a significant change in tax law. This generated a stir and thousands of comments asking for more information, or exclaiming their concerns.
The claim is false, as there are no records of Trump making such a declaration, nor is there evidence of a modification to the tax code that would impose such restrictions. Furthermore, the original author of the claim later admitted that it was a disinformation campaign.