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To help families with children feel more financially secure, the US federal government and 12 different states offer Child Tax Credits.
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The Taxpayer Relief Act of 1997 included the creation of the federal Child Tax Credit, which provides a tax credit of $400 for each child under the age of 17.
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After the Tax Cuts and Jobs Act of 2017, it was increased to $2,000 with a $1,400 cap on the amount that could be reimbursed for each child.
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The American Rescue Plan Act of 2021 (ARPA) temporarily boosted the Child Tax Credit from 2,000 to 3,600 dollars per child under the age of six and 3,000 dollars per child up to the age of 17 for the tax year 2021.
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The expanded child tax credit may have helped over 61 million kids in over 36 million households, according to the government's official website.
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The majority of the money is spent on necessities like child care, food, shelter, and other essentials.
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Unfortunately, this was only a temporary solution, and the Child Tax Credit advance was stopped as soon as the coronavirus pandemic began to subside.
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The Tax Cuts and Jobs Act's individual and estate tax provisions will expire in 2025.