American Family Act

The American Family Act establishes a monthly child tax credit of $250 per month for each child under age 6 and $300 per month for each child aged 6-18, with income limits of $150,000 for joint filers and $112,500 for other filers. The credit is refundable, meaning it can be paid even if the taxpayer owes no income tax, and will be adjusted annually for inflation. The bill includes detailed rules for determining eligibility, including requirements that the child resides with the taxpayer for more than half the month and provisions to prevent fraud through recapture of improperly received payments. The credit will be paid monthly in advance rather than as a single annual payment, with specific mechanisms for calculating and distributing the payments.