The Baby 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 instances 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 invaluable 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 also be an necessary device for lowering baby poverty. Research have proven that the CTC has a major influence on lowering baby poverty charges.