TAX BULLETIN – Tax Tips, News, & Updates: Issue No. 3 | Vol No. 6
We at SSCPA Consulting want to send our best wishes to you (our clients, peers, business partners, and colleagues) and your families. We are certainly looking forward to a blessed and successful 2026. The next series of issues Nos 3 and 4 (2026) will focus on Tax related aspects of the One Big Beautiful Bill Act! This volume No. 6 (newsletter) focuses on the expanded child tax credits!
Current and Future Tax Policies on Child Tax Credits (CTC)
The central focus of the legislative tax proposal known as the One Big Beautiful Bill (OBBB) passed into law by Congress and signed into law by President Trump makes several portions of the prior Trump Administration’s 2017 Tax Cuts and Jobs Act (TCJA) permanent. Including a very low rate of income tax for big businesses. Under current law, the CTC is $2,000 for each eligible child who is being claimed by a taxpayer. Both must have valid social security and must be dependent, and lawful residents of the US.
Additionally, the maximum amount of the refundable portion of the child tax credit would not exceed $1,400 for each qualifying child. This will be affected by inflation. Also note late 2024 filing and previous year’s filing should note that the TCJA previously raised the CTC temporarily from $1,000 per child to $2,000 through 2025. For the 2024 tax year (returns filed in 2025), eligible taxpayers could receive refundable credits of up to $1,700.
HR1 OBBB CTC
As passed by the House, Section 110101 of H.R. 1, the One Big Beautiful Bill Act creates allows for an increase in the CTC to $2,200. Computation indications are affected by the amount of inflation starting in 2026. All taxpayers who are CTC claimants must have a Social Security number to qualify. Additionally, the maximum refundable portion of the CTC is $1,400, also affected by inflation!
The Devil is in the Details: As with all other packages, the devil is always in the details. While the OBBB package increases the value of the child tax credit to $2,200 for each child, tax policy analysts warn that millions of children will be forgotten. This is due to the failure to make changes to the structure of the credit would largely leave low-income children behind according to an analysis at the Tax Policy Center. Approximately 17 million children, ¼ would continue to receive less than the full tax credit or no credit at all because of their family’s income!!
Other things to note about this controversial Bill are:
- One of the main tenets of the Bill is that is permanently extends the 2017 Tax Cuts and Jobs Act (TCJA), which was set to expire at the end of this 2025 unless Congress acted.
- In addition to the tax policies the Bill includes significant changes to immigration, energy, healthcare, and so-called “safety net programs” such as Medicaid.
- Projections from the Congressional Budget Office (CBO) and independent analysts estimate that Trump’s OBBBA will add from $3.3 trillion to $4.5 trillion to the national debt in the next decade.
Reactions to the Bill
Results of independent research and analyses from several organizations have suggested that most of the benefits of this Bill skew toward the wealthy. Kiplinger also reported on the results of their opinion polls on this Bill. They conclude that more Americans oppose than support the big bill.
Business Taxes for C-Corps; S-Corps; Partnerships are due by March 15, 2026!
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WE HOPE YOU ENJOYED & LEARNED FROM THIS MONTH’S BULLETIN!
Contact us for more information which is specific to your situation as there are always exceptions to the IRS rules and specific to the states’ rules!
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