If you’re raising kids, you’ve already felt the pinch – groceries, gas, rent, child care, everything is more expensive. And now, depending on what Congress decides, the Child Tax Credit (CTC) could shrink in half after 2025.
Yep, just as everything costs more, some lawmakers are debating whether to slash one of the only tax breaks that actually helps parents keep up.
So, what does this mean for moms? Let’s talk about it – the facts, the politics, and my own take on whether families should even count on these tax credits in the first place.
The Basics: What’s Happening to the Child Tax Credit?
Right now, the Child Tax Credit gives families $2,000 per child under 17. This is thanks to Trump’s 2017 Tax Cuts and Jobs Act. But here’s the kicker: if Congress does nothing, it drops back down to $1,000 per child after 2025.
That means families would lose $1,000 per kid in tax relief.
There’s bipartisan support to keep the credit at $2,000, but no guarantees. Some lawmakers want to expand it, while others think it should be cut entirely.
So, we wait.
Should Families Rely on Tax Credits?
Look, I won’t deny that tax credits help. When everything costs more, every little bit counts. But should families rely on government tax breaks?
Nope.
You know the saying, “Nothing is certain except death and taxes”? I’d add, “…and the government finding ways to take more of our money.”
We’ve owed taxes for the last two years, so tax credits don’t feel like much relief to me personally. I know our income and withholding choices play a role, and it’s our job to meet with a tax professional to make the best financial decisions for our family.
I think tax credits should be treated as a bonus, not a guarantee. If they help, great. But you can’t count on the government to give you back what they’ve already taken.
The Bigger Issue: Inflation and Cost of Living
If the cost of living keeps climbing, does it make sense to drop tax credits back to pre-inflation levels?
Absolutely not.
It feels like common sense – if it costs more to raise kids, the credits should at least stay where they are. Instead, we might get stuck with higher costs and less tax relief.
Honestly, I’d rather see lower taxes across the board than these temporary relief programs. But that would require less government involvement, and let’s be real … that’s not happening anytime soon.
The Debate: Who Should Get the Child Tax Credit?
One of the biggest debates is who should qualify for the credit. Some lawmakers want to expand it so that even parents who don’t work can receive monthly payments, like during the pandemic. Others think it should only apply to families with at least one wage earner.
Personally, I think the tax credit should go to any family with a working adult—whether it’s a single-income household or a two-parent family. If a parent is working (whether outside the home or staying home while their partner earns income), they should benefit.
But here’s where it gets sticky. Should people who choose not to work at all still get tax credits? If they’re genuinely struggling to find a job or facing hardships, that’s one thing. But if they’re choosing to live off government assistance instead of contributing to society? That’s where I draw the line.
I believe in fairness—if you’re working to support your family, you should get the benefits. But benefits shouldn’t just be a handout for those who opt out of working when they’re fully capable.
What Moms Should Do Now
Since we have no control over what Congress decides, here’s what I suggest for moms who are worried about these changes:
- Don’t Count on the Credit. Assume nothing. If you get it, great. But plan your budget as if you won’t.
- Meet with a Tax Professional. If you’re worried about owing taxes, find out if adjusting your withholdings or estimated payments makes sense.
- Look for Additional Income. I was motivated to earn an income even when I was a SAHM. There are so many side hustles and remote jobs that allow moms to earn extra money while staying home with their kids. (I even wrote a post about hobbies that can make SAHMs money!)
- Stay Informed. Follow what Congress is doing so you’re not caught off guard when tax season rolls around.
Final Thoughts
The Child Tax Credit debate highlights a much bigger issue—how much control the government has over family finances. I’d rather see lower taxes than rely on whatever tax breaks politicians decide to throw our way.
For now, I’m treating the CTC as what it is—a bonus, not a guarantee—and focusing on what I can control.
Moms, what do you think? Are you worried about the possible changes? Do you think the tax credit should be expanded or cut back? Let’s talk about it in the comments!
