The credit would phase out for those making above those levels, where it would be reduced and then plateau at $2,000 per child. It would be capped for individuals with $200,000 in income and couples with $400,000, the same thresholds in place for the credit today.
“The idea is the current $2,000 that people get per kid still phases out the same way,” said Steve Wamhoff, director of federal tax policy at the Institute on Taxation and Economic Policy.
Protecting the credit for those making up to $400,000 is also in line with Biden’s campaign promise not to raise taxes for people making under that level of income. Read more