The Child Tax Credit (CTC) is a vital financial assistance program designed to alleviate the financial burdens faced by middle-class and low-income families in the U.S. Established in 1997 and expanded significantly under the American Rescue Plan (ARP) in 2021, the CTC offers up to $3,600 for children under six and $3,000 for those aged six to seventeen. This program aims to support families struggling with rising living costs and inflation. One key feature of the CTC is its partial refundability, allowing families with low or no tax liabilities to receive up to $1,900 per child in refunds. To qualify, families must meet specific eligibility criteria, including having a valid Social Security Number for each child and being the primary caregiver. The CTC not only reduces financial pressure by covering essential costs like childcare and education but also plays a crucial role in reducing child poverty rates. Families are encouraged to stay informed about application processes and payment schedules to maximize their benefits.
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