One major provision of the American Families Plan extends the Child Tax Credit (CTC) expansion, originally created by the American Rescue Plan, through 2025 and increases the amount to $3,600 per child under age 6 and $3,000 per child age 6 through 17.
What does this expansion do?
This expansion increases the amount of money families receive per child, makes the credit fully refundable and expands availability to children in families with low earnings or that lack earnings during a year. It also provides the option for advance payment, beginning July 15, which can deliver regular payments so families can cover expenses as they arise.
How will the CTC support Georgians?
This expansion is expected to cut child poverty in half, reduce total poverty from 13.6% to 5.9% and lift nearly 700,000 Georgia kids near or above the poverty line. It also improves racial equity, as about 470,000 Black Georgians under 17 were left out of the CTC prior to the expansion because their families’ incomes were too low.
What’s next for the CTC?
Congress should make this CTC expansion permanent. It should also create an easily accessible system that offers safeguards to all families and allows recipients to quickly update relevant information so that no families are surprised to find they must pay money back when filing their taxes.