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 latest growth 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 worthwhile tax break for households. It could possibly assist to offset the price of elevating kids and cut back the tax burden on working households. The CTC can be an essential software for decreasing youngster poverty. Research have proven that the CTC has a big influence on decreasing youngster poverty charges.