H.R. 10282: Stronger Start for Working Families Act

This bill would change the rules for the refundable child tax credit, which is the part of the child tax credit that can be paid out as a refund even if a family owes little or no federal income tax.

What the bill changes

• Under current law, a taxpayer generally must have at least $3,000 in earned income to qualify for the refundable part of the child tax credit.
• This bill would lower that earned income threshold to $1.
• It would also make a related technical change by removing a separate rule in the tax code that no longer fits with the new threshold.

What that means in practice

In plain terms, the bill would make it easier for families with very low earnings to receive the refundable portion of the child tax credit. Some people who currently earn less than $3,000 in a year could become eligible for the refund if they have at least $1 of earned income and otherwise meet the credit’s requirements.

When it would take effect

The change would apply to taxable years beginning after December 31, 2025, meaning it would first affect tax years starting in 2026.

Relevant Companies

None found