A new bill is stirring up some major changes that could affect millions of families in the U.S. The proposal, called H.R. 547, might make it harder for certain parents to claim the child tax credit. Let’s break down what this means and why it’s a big deal for so many people!
What’s the Deal with the New Bill?
H.R. 547 is looking to update the rules for the child tax credit, and it could have a significant impact. Currently, to claim the credit, your child or dependent needs a Social Security number. But this bill is looking to require parents to have one too. If it passes, this would likely leave millions of families ineligible for the child tax credit.
Why This Matters to You
Each year, millions of American families qualify for the child tax credit, which can be a financial lifesaver. For tax year 2024, the credit is $2,000 per child under 17, with a refundable portion of $1,700. This helps families in a big way! But now, under this bill, the requirements might change in a way that affects many families who have children but no Social Security numbers.
What Exactly Does This Bill Do?
Rep. Jefferson Van Drew, a Republican from New Jersey, is behind the bill, and it could affect many families across the country. Right now, only the child has to have a Social Security number to claim the credit. But if this bill passes, the parent will also need one.
At present, millions of families are living with at least one family member who is undocumented, and many of these families include children under 18. So, this new bill could potentially block those families from getting the child tax credit, which is a huge deal for many.
What’s the Reaction?
Experts are weighing in on the bill, and they’re not holding back. Kevin Thompson, a finance expert, told Newsweek, “This bill follows Trump’s recent anti-immigration policies, making it harder for non-citizens to claim tax credits for their U.S.-born children.” He believes the goal is to prevent non-citizens from claiming their children as dependents.
On the other hand, Alex Beene, a financial literacy instructor, said, “The change would likely stop people who have been receiving the credit in the past from getting it anymore.” This means the new rules would affect families who have been relying on the child tax credit to make ends meet.
So, What’s Next?
There’s a good chance H.R. 547 could pass, especially with Republicans now holding control of both the House and Senate. Thompson also pointed out that with this bill, there could be legal battles and state-level challenges, just like we’ve seen with other immigration policies.
Bottom line: This bill is a big deal, and if it goes through, it could change the way many families get help through the child tax credit.
