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How expiring Bush tax cuts will affect you

Children worth less at tax time
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Children worth less at tax time

Almost half of the hypothetical CCH family's bigger tax bill comes not from the increased tax rates, but from the disappearance of a popular family-friendly tax break: the child tax credit.

Currently, taxpayers can claim a credit of $1,000 per eligible child on their tax returns. Since this is a credit, it reduces a filer's tax bill dollar for dollar. A $2,500 tax bill, for example, would be cut to $1,500, thanks to a $1,000 child tax credit claim.

In 2011, however, if the Bush-era tax laws expire, each qualifying child will be worth a credit of just $500 at tax-filing time.


 

 

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