TABLE 1
Options to Expand the Child Tax Credit (CTC)
Impact on Revenue (billions of current dollars), 2025–2034 Fiscal Years¹
Source: Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0325-4) Table T25-0356.
Notes: (1) Each proposal would be effective 01/01/2025. Estimates assume a fiscal split of 20-80 (e.g., 20 percent of 2025 calendar year revenue is received by the Treasury in the 2025 fiscal year of 10/01/2024 through 09/30/2025, and 80 percent in the following fiscal year). The actual effect on receipts could differ.
(2) Option 1 would eliminate the requirement that tax units have at least $2,500 of earnings before they can access the refundable CTC.
(3) Option 2 would allow the refundable portion of the credit to phase-in to the full $2,200 per child.
(4) Option 3 would increase the rate at which the refundable CTC phases in with earnings to 30 percent.
(5) Option 4 would increase the rate at which the refundable CTC phases in with earnings to 15 percent per child (up to 45 percent for tax units with three or more qualifying children).
(2) Option 1 would eliminate the requirement that tax units have at least $2,500 of earnings before they can access the refundable CTC.
(3) Option 2 would allow the refundable portion of the credit to phase-in to the full $2,200 per child.
(4) Option 3 would increase the rate at which the refundable CTC phases in with earnings to 30 percent.
(5) Option 4 would increase the rate at which the refundable CTC phases in with earnings to 15 percent per child (up to 45 percent for tax units with three or more qualifying children).