The Youngster Tax Credit score (CTC) is a tax credit score for folks and guardians of youngsters below the age of 17. The CTC was first launched in 1997 and has been expanded and modified a number of instances since then. The latest enlargement 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 could assist to offset the price of elevating kids and cut back the tax burden on working households. The CTC can be an vital instrument for decreasing youngster poverty. Research have proven that the CTC has a major affect on decreasing youngster poverty charges.