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H.R. 5903House115th Congress (2017-2019)In Committee

Permanent Tax Relief for Working Families Act

Sponsored by Jason SmithRep. Jason Smith (R-MO)
Introduced May 22, 2018

AI-Generated Summary

Updated April 15, 2026 at 9:59 PM UTC

The Permanent Tax Relief for Working Families Act makes permanent the changes to the child tax credit that were added by the 2017 tax law. It sets a $2,000 credit for each qualifying child and a $500 credit for other dependents, establishes income limits where the credit begins to phase out, and defines how much of the credit can be refunded. The bill also adds rules that require a Social Security number for the taxpayer and each child to claim the credit.

Key Provisions

  • Provides a $2,000 credit for each qualifying child and a $500 credit for each other dependent.
  • The credit starts to phase out when a joint return’s adjusted gross income exceeds $400,000 (or $200,000 for all other filers).
  • Makes $1,400 of the child credit refundable (the amount that can be paid back as a refund), with an automatic cost‑of‑living increase each year after 2018.
  • Sets the refundable portion for other dependents at $2,500 (reduced from $3,000).
  • Requires the taxpayer’s and each child’s Social Security number to be on the return; if a child’s SSN is missing, the child is treated as a regular dependent for the $500 credit.
  • Eliminates a previous subsection (h) and applies the changes as if they were part of the 2017 tax law.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 22, 2018

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HouseIntro Referral

Introduced in House

May 22, 2018

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

May 22, 2018

Bill Text

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Introduced in HouseIssued May 22, 2018

I

115th CONGRESS

2d Session

H. R. 5903

IN THE HOUSE OF REPRESENTATIVES

May 22, 2018

Mr. Smith of Missouri (for himself, Mr. Blum, Mrs. Handel, Ms. Tenney, Mr. Mast, Mr. Barr, Mrs. Love, Mr. Hurd, Mr. Taylor, Mr. Valadao, Mr. Budd, Mr. Bishop of Michigan, and Mr. Curbelo of Florida) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to make permanent certain changes made by Public Law 115–97 to the child tax credit.

1.

Short title

This Act may be cited as the Permanent Tax Relief for Working Families Act.

2.

Increase in and modification of child tax credit

(a)

In general

Section 24 of the Internal Revenue Code of 1986 is amended—

(1)

by amending subsection (a) to read as follows:

(a)

Allowance of credit

There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—

(1)

$2,000 for each qualifying child of the taxpayer, and

(2)

$500 for each dependent of the taxpayer (as defined in section 152, without regard to all that follows resident of the United States in section 152(b)(3)(A)) other than a qualifying child.

,

(2)

in subsection (b)—

(A)

by striking the threshold amount in paragraph (1) and inserting $400,000 in the case of a joint return ($200,000 in any other case),

(B)

by striking paragraph (2), and

(C)

by striking Limitations and all that follows through The amount and inserting Limitation based on adjusted gross income.—The amount,

(3)

in subsection (d)(1)(A), by striking all that follows under this section and inserting the following:

determined—

(i)

by substituting $1,400 for $2,000 in subsection (a)(1),

(ii)

without regard to subsection (a)(2), and

(iii)

without regard to this subsection and the limitation under section 26(a).

,

(4)

in subsection (d)(1)(B)(i), by striking $3,000 and inserting $2,500,

(5)

by inserting after subsection (d)(2) the following new paragraph:

(3)

Adjustment for inflation

In the case of a taxable year beginning after 2018, the $1,400 amount in paragraph (1)(A) shall be increased by an amount equal to—

(A)

such dollar amount, multiplied by

(B)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2017 for 2016 in subparagraph (A)(ii) thereof.

If any increase under this paragraph is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.

,

(6)

by amending subsection (e) to read as follows:

(e)

Identification requirements

(1)

Taxpayer

No credit shall be allowed under this section if the identifying number of the taxpayer was issued after the due date for filing the return for the taxable year.

(2)

Qualifying child

(A)

In general

No credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes the social security number of such child on the return of tax for the taxable year.

(B)

Social security number defined

For purposes of this subsection, the term social security number means a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued—

(i)

to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and

(ii)

before the due date for such return.

(C)

Treatment of qualifying children disallowed credit

In the case of any qualifying child with respect to whom a credit is not allowed under this section by reason of subparagraph (A), such child shall be treated as a dependent to whom subsection (a)(2) applies.

, and

(7)

by striking subsection (h).

(b)

Effective date

The amendments made by this section shall take effect as if included in the enactment of section 11022 of Public Law 115–97.