The Baby Tax Credit score (CTC) is a tax credit score for folks and guardians of youngsters underneath the age of 17. The CTC was first launched in 1997 and has been expanded and modified a number of occasions 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 priceless 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 also be an essential device for lowering baby poverty. Research have proven that the CTC has a major affect on lowering baby poverty charges.