The year 2022 took a toll on the finances of several families across the United States of America. Not only were the prices of everyday grocery items significantly higher but Russia’s invasion of Ukraine and the resulting economic sanctions on Russian oil imports saw the average price of gas surge throughout the country.
In fact, just as the US began to recover from the effects of the pandemic, the country was thrown into a cost-of-living crisis, which affected citizens from the middle and lower strata of society.
The resulting increase in the cost of living saw several Americans turn to welfare benefits such as the Supplemental Nutritional Assistance Program (SNAP), and while the federal government didn’t issue further stimulus checks, the leaders of several states began issuing monetary assistance on their own through either stimulus payments or tax credits.
However, with the advent of a new year, it would be prudent to prepare for further interest rate hikes as the Federal Reserve looks to curb inflation. With this in mind, making use of welfare schemes could prove to be beneficial for both you and your family.
One such welfare scheme is the Child Tax Credit (CTC) scheme with the American Rescue Plan boosting the amount one can claim for 2021 alone.
What is Child Tax Credit?
Child Tax Credit entitles tax-paying Americans to a tax benefit for each dependant qualifying child.
In 2021, the American Rescue Plan, as alluded to earlier, increased the tax benefit provided by CTC from 2,000 dollars per child (anyone under the age of 17) to 3,000 dollars per child (anyone under the age of 18) with the amount rising to 3,600 dollars for children under the age of six.
How much is CTC in 2023?
Unfortunately, the CTC awarded per child will not be increased in 2023 meaning that the maximum amount one can claim per qualifying child is 2,000 dollars with up to 1,540 dollars being refundable.