Federal Child Tax Credit
The federal Child Tax Credit (CTC) reduces the tax burden for families with children and is also partially refundable, meaning it – like the EITC – supplements the incomes of low-income working parents who do not owe taxes. The CTC provides up to $1,000 for each child under age 17.
The refundable aspect of the federal CTC has been steadily increasing, and it now equals 15% of earnings above $3,000 (up to the maximum credit based on the number of qualifying children). The expansion included in the 2009 economic recovery legislation reaches 2.9 million new children and provides another 10 million children with larger benefits.[i]
More information on the CTC is available from the IRS.
[i]
Arloc Sherman, 2009. “Recovery Agreement Temporarily Expands Child Tax Credit for Large Numbers of Children in Every State,”