Counting a child benefit as income would cause a painful domino effect

Source: Niskanen Center
by Will Raderman

“As Child Tax Credit (CTC) reforms have made abundantly clear, even minor administrative rules can be significantly impactful. A key component of some recent child benefit proposals, including the Family Security Act 2.0, is to place the Social Security Administration (SSA) in charge of implementation. While the IRS has handled the CTC since its inception, the SSA is likely better suited to distribute monthly payments (another legislative priority). However, this administrative shift could imperil recipients unless the child benefit is explicitly disregarded as income.” (11/03/22)