Financial difficulties were felt by a lot of American families in 2022. Due to Russia’s attack of Ukraine and the subsequent economic sanctions against importation of Russian oil, basic grocery prices in the country have increased significantly along with ordinary price of gas.
According to an article published by Marca on January 13, 2023, the United States was plunged into a cost-of-living crisis that had an impact on people from the middle and lower classes just as the country was beginning to recover from the pandemic’s effects.
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 issuing stimulus checks, the governors of several states started distributing money on their own through stimulus payments or tax credits.
The Child Tax Credit (CTC) program is one such welfare program, and the American Rescue Plan has increased the amount one can claim for 2021 alone.
American citizens who pay taxes are entitled to a tax benefit for each qualifying child who is a dependent.
According to the earlier remark of the American Rescue Plan, the tax benefit offered by CTC increased in 2021 from $2,000 per child (those under the age of 17) to $3,000 per child (those under the age of 18), with the amount increasing to $3,600 for young children under the age of six.
The CTC awarded per child will sadly not increase in 2023, so the maximum amount that can be claimed per eligible child is 2,000 dollars, with up to 1,540 dollars of that amount being refundable.