\n<\/p>\n
Halfpoint Images | Moment | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Senate Republicans on Tuesday passed President Donald Trump<\/a>\u2018s spending package, which includes a bigger child tax credit<\/a> \u2014 but some families won\u2019t see a benefit, policy experts say.<\/p>\n Under current law, the maximum child tax credit is $2,000, which will revert to $1,000 after 2025 without changes from Congress. Wider income eligibility limits will also sunset without an extension.<\/p>\n If enacted, the Senate bill<\/a> would permanently raise the top credit to $2,200 starting in 2025. The provision would also index this figure for inflation after 2025.<\/p>\n By contrast, the House-approved <\/a>One Big Beautiful Bill Act would increase the highest child tax credit to $2,500 from 2025 through 2028. After that, the credit\u2019s max value would fall to $2,000 and be indexed for inflation.<\/p>\n More from Personal Finance:<\/strong> With differences between the Senate and House provisions, it\u2019s unclear how the measure could change. The House still must approve the Senate\u2019s legislation before it arrives at Trump\u2019s desk for signature.<\/p>\n<\/div>\n For 2025, the child tax credit is worth up to $2,000 per qualifying child under age 17 with a valid Social Security number.<\/p>\n After the first $2,500 of earnings, the child tax credit value is 15% of adjusted gross income, or AGI, until the tax break reaches that peak of $2,000 per child.<\/p>\n The tax break starts to phase out once AGI exceeds $400,000 for married couples filing together or $200,000 for all other taxpayers.<\/p>\n<\/div>\n However, \u201cif you have very low income, you can\u2019t access the full $2,000 credit,\u201d Elaine Maag, senior fellow in the Urban-Brookings Tax Policy Center, previously told CNBC<\/a>.<\/p>\n The reason: The child tax credit is only partially \u201crefundable,\u201d which provides a benefit after your balance reaches $0. This feature helps the lowest earners who typically don\u2019t owe taxes.<\/p>\n The refundable portion, known as the additional child tax credit, is worth up to $1,700 for 2025.<\/p>\n<\/div>\n If the Senate bill is enacted, the bigger child tax credit would primarily go to middle- and upper-income families, according to Kris Cox, director of federal tax policy with the Center on Budget and Policy Priorities\u2019 federal fiscal policy division.<\/p>\n
What the Senate Republican tax and spending bill means for your money<\/a>
Student loan borrowers face \u2018default cliff\u2019 as late payments climb<\/a>
How the GOP budget bill targets immigrant finances<\/a><\/p>\nHow to calculate the child tax credit<\/h2>\n
Who benefits from the child tax credit boost<\/h2>\n