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Family Security Act
10/21/2024, 11:53 PM
Summary of Bill S 5256
One of the key provisions of the Family Security Act is the establishment of a monthly child allowance for families with children. This allowance would provide financial support to parents to help cover the costs of raising children, such as childcare, education, and healthcare expenses. The amount of the allowance would vary depending on the number of children in the family and the income level of the parents.
In addition to the child allowance, the Family Security Act also includes provisions to expand access to affordable childcare and early childhood education programs. This would help working parents by providing them with more options for quality childcare and education for their children. Another important aspect of the bill is its focus on supporting working families by increasing the minimum wage and expanding access to paid family and medical leave. These measures are aimed at helping families balance work and family responsibilities, while also ensuring that they have the financial stability they need to thrive. Overall, the Family Security Act is a comprehensive piece of legislation that aims to support families in need and promote economic security for all Americans. It addresses key issues such as childcare, education, and paid leave, with the goal of helping families achieve financial stability and security.
Congressional Summary of S 5256
Family Security Act
This bill increases the child tax credit and provides a new tax credit for pregnant mothers. The bill also makes changes to the state and local tax (SALT) deduction, earned income tax credit (EITC), heads of household filing status, tax exemption for dependents, and deduction for dependent care expenses.
This bill increases the child tax credit for 2026 to $3,000 or $4,200 for each child, depending on the child’s age, makes the tax credit fully refundable (currently a portion is refundable), and allows taxpayers to receive the tax credit in advance monthly payments. Under the bill, the child tax credit is limited to six children and phases out once a taxpayer’s income exceeds a certain threshold.
The bill provides a new refundable tax credit for pregnant mothers of $2,800, which phases out once a taxpayer’s income exceeds a certain threshold. Taxpayers may receive the tax credit in advance monthly payments.
The bill permanently extends the SALT deduction for individuals (currently, the SALT deduction for individuals expires in 2026) and increases the limit to $30,000 from $10,000 (or to $15,000 from $5,000 for married taxpayers filing separately).
The bill permanently eliminates the tax exemption for dependents. Under current law, a tax exemption for dependents is available starting in 2026.
This bill also eliminates the
• head of household filing status,
• tax credit for dependent care expenses for children under 13 years old, and
• different percentages that apply based on the number of qualifying children in the EITC calculation.
