The Youngster Tax Credit score (CTC) is a tax credit score for folks and guardians of kids below the age of 17. The CTC was first launched in 1997 and has been expanded and modified a number of occasions 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 totally refundable.
The CTC is a precious tax break for households. It may possibly assist to offset the price of elevating youngsters and cut back the tax burden on working households. The CTC can be an necessary software for lowering baby poverty. Research have proven that the CTC has a big affect on lowering baby poverty charges.