Family First Act
Sponsored By: Senator Jim Banks
Introduced
Summary
Overhauls federal family tax benefits. This bill would remake the Child Tax Credit into a permanent, restructured refundable credit, revamp the Earned Income Tax Credit for parents, and remove Head of Household filing status to reshape who gets tax breaks for families.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 2 benefits, 3 costs, 2 mixed.
Bigger child tax refunds for families
If enacted, this bill would create a refundable child tax credit for tax years after Dec 31, 2025. You would get $4,200 for each qualifying child under age 6 and $3,000 for other qualifying children under 17. The credit would be capped at six children per taxpayer. If your MAGI is $20,000 or more you get the full credit percentage; otherwise it would be MAGI divided by $20,000. The credit would be reduced by $50 for each $1,000 (or fraction) your MAGI is over $400,000 if married filing jointly or $200,000 otherwise. Returns must include SSNs for you (and at least one spouse on joint returns) and for each child.
New credit for pregnant mothers
If enacted, this bill would create a refundable credit equal to a percentage of $2,800 for each qualifying unborn child for tax years after Dec 31, 2025. A qualifying unborn child must be at least 20 weeks gestation and certified by a physician. The applicable percentage is 100% if MAGI is at least $10,000, otherwise it would be MAGI divided by $10,000. The credit would be reduced by $50 for each $1,000 (or fraction) your MAGI is over $400,000 if married filing jointly or $200,000 otherwise. A physician must provide a written certification the mother can use only to claim this credit.
Dependent personal exemption removed
If enacted, the bill would set the dependent exemption amount to zero for tax years after Dec 31, 2025. That would eliminate the additional personal exemption amount that taxpayers could claim for dependents in those years. The bill says that the zero amount should not be used to decide other deductions except where the law clearly allows it.
Most state and local tax deductions blocked
If enacted, the bill would disallow a deduction for most state and local taxes for individuals for taxable years beginning after Dec 31, 2025. Foreign taxes and state or local taxes paid in carrying on a trade or business would still be deductible. A special timing rule would treat taxes paid before 2026 for a tax year after 2025 as paid on the last day of the year owed.
Tighter child and dependent care credit
If enacted, the bill would narrow the child and dependent care credit for tax years after Dec 31, 2025. It would change who counts as a qualifying individual and update age-based language. Outside-the-home care expenses would only count if the person cared for regularly spends at least eight hours a day in your household. These changes would make some parents get less credit or lose eligibility.
Restructured Earned Income Credit
If enacted, the bill would rewrite the EITC for tax years after Dec 31, 2025. It would set fixed dollar caps: $700 (single) or $1,400 (joint) with no qualifying children, and $4,300 (single) or $5,000 (joint) with one or more qualifying children. The credit percentage for taxpayers with one or more children would be 25 percent and the final phaseout percentage would be 10 percent. The bill also updates earned-income and phaseout thresholds and includes transitional rules for some children.
Head of Household filing status repealed
If enacted, the bill would repeal the Head of Household filing status for tax years after Dec 31, 2025. Many rules and dollar amounts that used that status would be changed. The bill would also add preparer due-diligence rules for certain credits and create a $500 penalty for return preparers who fail those duties.
Sponsors & CoSponsors
Sponsor
Jim Banks
IN • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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