Child Tax Credit

About Child Tax Credit

The Child Tax Credit was enacted in 1997 at 400 per child. The credit was gradually increased over the years. The Tax Cuts and Jobs Act of 2017 doubled the credit to 2,000 per child and made it partially refundable. For one year, 2021, the American Rescue Plan increased the credit to 3,000 per child aged 6 to 17 and 3,600 per child under 6, with full refundability and monthly payments. The expanded CTC reduced child poverty by nearly 30 percent. When Congress failed to extend the expansion in 2022, child poverty more than doubled. The debate over expanding the CTC represents one of the most significant tax policy disputes in US politics. Business groups oppose expansions while anti poverty advocates push for permanent expansion.