The American Rescue Plan Act of 2021, signed into law by President Biden, expanded the Child Tax Credit (CTC) for 2021. The CTC is a tax credit that helps families with the cost of raising children. The expanded CTC provided up to $3,600 per child under age 6 and up to $3,000 per child ages 6 to 17. The credit was fully refundable, meaning that families could receive the full amount of the credit even if they did not owe any income taxes.
The expanded CTC was a significant benefit for families, and it helped to reduce child poverty in the United States. However, the expansion of the CTC was only temporary, and it is set to expire at the end of 2021. Congress is currently debating whether to extend the expanded CTC, and there is bipartisan support for doing so. Extending the expanded CTC would help to continue to reduce child poverty and provide much-needed relief to families.
