If the Biden administration's rumored proposal to Congress passes, families with children under the age of 18 living at home could receive a tax cut of up to $300 per month per child through the end of 2025.

As reported by the Washington Post and the New York Times, the American Families Plan is expected to extend through December 2025 the child tax credit extended by the administration's $1.9 trillion stimulus package. This allows parents and legal guardians to receive a total credit of up to $16,200 per child.

Current payments to parents, which are expected to begin in July, will only last until the end of this year.

In 2021, the total annual child tax credit for most parents will increase from $2,000 per child per year to $3,000 for children ages 6-17 and $3,600 for children under age 6. Currently, all parents who qualify for Stimulus Check 3 will directly receive half of the child tax credit this year.

If income is $75,000 or less in 2020 (up to $150,000 for married couples filing jointly), $300 per child under age 6 and $250 per child ages 6-17 will be paid monthly from July through December 2021.

Income is phased out up to $95,000 and $170,000, respectively. A child tax credit calculator can be used to see how much of a credit you are entitled to.

Single filers with incomes between $95,001 and $200,000 and joint filers with incomes between $170,001 and $400,000 will continue to receive the traditional child tax credit of $2,000 per child under age 17 (but not under age 18). The credit is reduced by $50 for each $1,000 of income over the threshold amount.

If Biden's new plan moves forward, he could receive a child tax credit check for nearly four years. The Census Bureau estimates that by 2020, more than 63 million parents with children under the age of 18 will be living at home.

Some Democrats, including Senator Sherrod Brown (D-Ohio), Senator Cory Booker (D-NJ), and Representative Rosa DeLauro (D-NJ), estimate that in the 2020 Census, the number of They estimate that 63 million parents will have children under the age of 18 in the 2020 census. Some Democrats, including Senator Sherrod Brown (R-Ohio), Congressman Cory Booker (R-New Jersey), Congresswoman Rosa DeLauro (R-Connecticut), and Congresswoman Suzan DelBene (R-Washington), are pushing to make the expanded child tax credit permanent. They are. [Expanding the child tax credit is the most important policy to come out of Washington in generations, and Congress has a historic opportunity to provide a lifeline to the middle class and permanently cut child poverty in half," these lawmakers wrote in a statement this week.

But even Biden's proposed extension of the child tax credit could face a long odds in the Senate.

More broadly, the American Families Plan includes universal pre-K, free community college, child care subsidies, and paid parental leave. It would cost an estimated $1 trillion, part of which would be paid for by higher taxes on wealthy Americans.