Back in March of 2021, as part of the American Rescue Plan, Congress expanded an important tax benefit: The Federal Child Tax Credit. The credit, originally enacted as part of the Taxpayer Relief Act of 1997, was increased from $2,000 to $3,000 per child ages 6-17, and to $3,600 per child below the age of 6. The bill also made an important change to the credit: making it fully refundable. Even if parents owed less in taxes than the credit covered, they could still receive the full refund.
The effects were remarkable.
