tThe pandemic has radically changed the financial condition of many The Americans. With lockdown measures imposed to curb the spread of the virus, businesses across the country have had to shut down operations, for at least a few weeks, which meant several thousand employees were out of work overnight.
While stimulus checks have helped avert financial losses for this population, many individuals and families have begun to show a greater level of dependence on welfare plans and tax breaks.
One of the most used tax breaks over the past two years has been the Child Tax Credit (CTC) scheme, which provides eligible families with a tax credit depending on their financial situation and the number of children in their family.
What is the child tax credit?
In simple terms, a CTC is a tax benefit given to US taxpayers for every eligible child in their household.
Who is eligible?
To be eligible to receive a CTC, a family cannot exceed the following income thresholds:
- If you are married and filing a joint return, or if you are filing as a qualifying widower or widower, the maximum is $150,000
- If you are filing as a head of household, the maximum amount is $112,500
- If you are a single filer or are married and file a separate return, the maximum is $75,000
How much is CTC worth?
After the implementation of the American Rescue Plan, the maximum amount one can earn has increased from $2,000 to $3,000 in 2021.
Families with children under the age of six can receive a maximum of $3,600.
Will CTC return in 2023?
With CTC helping lift millions of Americans out of poverty, there is a strong case for CTC’s permanent return.
However, the President of the United States Joe Biden He’ll have to convince fellow Democrats to attach business requirements to the program, if previous objections are anything to go by.
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