President Biden’s new budget proposal for the 2024 financial year includes significant changes aimed at helping American families. One key feature is an increase in the child tax credit from $2,000 to $3,600 for children under six years old. This article explains what this means, the chances of approval, and who might be eligible.
What is the $3600 Child Tax Credit?
The proposed budget by President Biden on March 9, 2024, aims to offer numerous benefits, including an increase in the child tax credit. Instead of being a direct stimulus payment, this proposal suggests increasing the credit per child under six from $2,000 to $3,600. This increase is designed to help families with young children manage their expenses better.
Chances of Approval
The proposed budget includes many benefits that could help American families, such as lowering health and housing costs, reducing prescription drug prices, and expanding affordable healthcare. However, passing a budget involves careful consideration of several factors, including the country’s financial situation and available funds.
There is no certainty that the entire budget will be approved. Some proposals might be accepted, while others might not. If the budget is approved, the government will announce the approved benefits and any changes to the proposed budget.
Who is Eligible for the $3600 Child Tax Credit?
The eligibility criteria for the increased child tax credit will depend on whether the budget is approved. Until then, the current criteria apply:
- The child must be under 17 years old by the end of the year.
- The child must have lived with the applicant for at least half of the year.
- The child must be claimed as a dependent on the tax return.
- The child can be a son, daughter, stepchild, foster child, sibling, or any other close relative.
- The child should not provide more than half of their own financial support during the year.
If the budget is approved, the new $3,600 amount will apply to children under six years old.
Other Key Aspects of Biden’s Budget
In addition to the child tax credit increase, President Biden’s budget includes several other significant proposals:
- Lowering costs for workers and families with children.
- Reducing prescription drug prices.
- Expanding affordable healthcare access.
- Lowering housing, home energy, and water costs.
- Enhancing border security and immigration enforcement.
- Promoting integrated deterrence globally.
- Transforming behavioral healthcare.
- Investing in high-poverty schools.
- Cutting global warming and pollution.
How to Claim the Child Tax Credit
To claim the child tax credit, you need to file Form 1040 and attach Schedule 8812. You can also check your eligibility using the interactive tool on the Internal Revenue Service (IRS) website. Be aware that the IRS might audit your claim if someone else has claimed the credit for the same child or if the child does not qualify.
President Biden’s proposed budget for 2024 includes a significant increase in the child tax credit, which could provide much-needed financial relief to many American families. While there is no guarantee that the budget will be approved, some parts may be implemented. If you meet the eligibility criteria, keep an eye on official announcements and be prepared to claim your benefits.
What is the proposed $3600 amount?
It’s an increased child tax credit for children under six years old, not a stimulus check.
What are the chances of the budget being approved?
Approval depends on various factors, including the financial situation of the country and available funds.
Who is eligible for the child tax credit?
Children under 17 years old who live with the applicant for at least half the year and are claimed as dependents.
How can I claim the child tax credit?
File Form 1040 and attach Schedule 8812. Check eligibility using the IRS interactive tool.
What other benefits are included in Biden’s budget?
Lower healthcare and housing costs, reduced prescription drug prices, and expanded affordable healthcare access, among others.