The Little one Tax Credit score (CTC) is a tax credit score for folks and guardians of youngsters beneath 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 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 possibly assist to offset the price of elevating youngsters and cut back the tax burden on working households. The CTC can be an necessary device for lowering baby poverty. Research have proven that the CTC has a big impression on lowering baby poverty charges.