The federal Child Tax Credit (CTC) helps families manage the cost of raising children. Under current law, the credit is worth up to $2,000 per eligible child (under age 17 at the end of the tax year). In 2021, the American Rescue Plan Act increased the maximum credit amount to $3,600 for children under age 6 and $3,000 for children aged 6-17, made the credit fully available to children and families with low incomes, included 17-year-olds for the first time, and issued half of the credit through advance monthly payments. If the credit exceeds income taxes owed, taxpayers can receive up to $1,700 per child as a refund, known as the additional child tax credit (ACTC) or the refundable portion of the CTC.
Read more about the CTC.
What states have a CTC?
Read about the impact of state CTCs.