The Youngster Tax Credit score (CTC) is a tax credit score for folks and guardians of youngsters underneath the age of 17. The CTC was first launched in 1997 and has been expanded and modified a number of instances since then. The newest growth of the CTC was in 2021, when the American Rescue Plan Act elevated the credit score quantity and made it absolutely refundable.
The CTC is a helpful tax break for households. It will possibly assist to offset the price of elevating youngsters and scale back the tax burden on working households. The CTC can be an essential software for decreasing little one poverty. Research have proven that the CTC has a major influence on decreasing little one poverty charges.