Democratic presidential nominee Hillary Clinton has proposed an expansion of the child tax credit to help lower child care costs for middle and low income families.
Under the proposal, the child tax credit would be doubled for children under the age of 5.
Currently, families in the lower- to upper-middle-income range can claim up to $1,000 for each child under the age of 17. Clinton’s proposal would allow these families to claim up to $2,000 for each child under the age of 5. Families could still claim $1,000 per child over the age of 5.
The proposal would also allow parents to receive part of the credit back as a refund if it exceeds their taxable income. Under the current rules, families can get back 15% of earnings over $3,000, with the $1,000-per-child value being the limit.
Clinton’s plan would expand this to 45% when taken for children under the age of 5.
The $3,000 income minimum would also be removed for parents who have children under the age of 17. Under the proposal, those who qualify for the credit’s refund would be able to apply the 15% to all of their earnings.
The Tax Policy Center has estimated that Clinton’s proposed expansion of the child tax credit would equate to a $209 billion reduction in revenue over 10 years.
