On July 25, the House approved, 237-173, the Child Tax Credit Improvement Act (H.R. 4935). The House Ways and Means Committee passed the legislation on June 25 (see The Source, 6/27/14).
According to the committee report, under current law, an individual may claim a $1,000 tax credit for each qualifying child under age 17. The amount claimed is reduced (phased-out) by $50 for each $1,000 of modified adjusted gross income over $75,000 for single individuals, $110,000 for married couples filing joint returns, and $55,000 for married individuals filing separate returns.
The bill, sponsored by Rep. Lynn Jenkins (R-KS), would 1) index the $1,000 credit for inflation to the nearest multiple of $50 after 2014; 2) increase the income phase-out for married joint and separate filers to $150,000 and $75,000, respectively; and 3) index the income phase-out for inflation (to the nearest $1,000) after 2014.
The bill would increase the income threshold for the refundable portion of the child tax credit from $3,000 to $10,000, and would index the income threshold for inflation.
