The Little one Tax Credit score (CTC) is a tax credit score for fogeys 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 absolutely refundable.
The CTC is a precious tax break for households. It might probably assist to offset the price of elevating kids and scale back the tax burden on working households. The CTC can also be an vital instrument for lowering youngster poverty. Research have proven that the CTC has a major affect on lowering youngster poverty charges.