Child Tax Credit: Still Available and Under Consideration for Boost Amidst Inflation Hardships

The Child Tax Credit, a tax credit aimed at reducing the financial burden of raising children, will still exist in 2023. Despite misconceptions, it has not gone away and is worth up to $2,000 per eligible child. Unlike in 2021, when it was fully refundable, only $1,540 per child is refundable in 2023.

However, as reported by The Motley Fool on January 30, 2023, lawmakers are still pushing for a boost to the Child Tax Credit. With inflation levels still high, families, especially lower-income households, may struggle to cover their bills without resorting to debt. As a result, there is a possibility of an increase in the maximum value of the Child Tax Credit or making it fully refundable once again. Monthly installment payments are still a possibility, as they were beneficial for families in 2021.

In 2021, the maximum value of the Child Tax Credit was raised to $3,000 per child aged 6 to 17 and $3,600 for children under 6, and became fully refundable. Half of the credit was available through monthly installment payments, which helped many families avoid going into debt and boost their savings account balances at a time when inflation levels were already starting to rise. Although the enhancement of the Child Tax Credit was not extended past 2021, its benefits, including helping families emerge from poverty and avoiding food insecurity, were acknowledged by lawmakers.