The American Family Act replaces the current annual child tax credit with a new monthly payment system that provides $300 per month for children ages 6-17 and $360 per month for children under 6 (up to $2,400 monthly for newborns), with payments phased out for higher-income families starting at $150,000 in income. The bill establishes eligibility requirements ensuring children are U.S. citizens or lawfully adopted, live with the taxpayer for more than half the month, and receive unpaid care from the taxpayer, while creating a $500 annual credit for other qualifying dependents like older children or relatives. To prevent fraud and overpayment, the bill includes a 10-year ban for fraudulent claims and a 2-year ban for intentional violations, coordinates monthly payments with annual tax obligations, and allows the IRS to administer payments through tax returns or an online portal with protections against wage garnishment. The bill also extends these benefits to U.S. territories with mirrored tax systems—such as Puerto Rico and American Samoa—with the federal government providing $300,000 annually for administrative costs. The new monthly credit system takes effect after 2024, eliminating the existing annual child tax credit structure.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.