Child Tax Credit to stay at $2,000
Many families in the United States of America experienced financial hardship in 2022. Along with sharp increases in the cost of basic groceries, the country’s average gas prices also increased as a result of Russia’s invasion of Ukraine and the ensuing economic sanctions against imports of Russian oil.
The US was plunged into a cost-of-living crisis that had an impact on people in middle and lower-class families just as the nation was starting to recover from the pandemic’s ravages.
As a result of the rise in living expenses, many Americans started relying on welfare programs like the Supplemental Nutritional Assistance Program (SNAP). Although the federal government stopped offering stimulus checks, the governors of several states started distributing money on their own through stimulus payments or tax credits.
It would be wise to get ready for additional interest rate increases as the Federal Reserve attempts to control inflation. Child Tax Credit (CTC) is another welfare program under the American Rescue Plan. This program gives a tax benefit to American taxpayers for each dependent qualifying child. In 2021, the American Rescue Plan increased the tax benefit for CTC from $2,000 per child (anyone below age 17) to $3,000 per child (anyone below age 18) with the amount increasing to $3,600 for children below age six.
Will there be an increase in 2023?
However, for the tax year 2022, the CTC was reduced to $2,000 per qualified child, and the average $300 advance monthly instalments were no longer available.
This year, the amount to be claimed will still stay at $2,000 with up to $1,450 of that amount is refundable.
The CTC awarded per child will sadly not increase in 2023. The maximum amount that may be claimed per eligible child is 2,000 dollars, with up to 1,540 dollars of that amount being refundable.