{"id":27005,"date":"2022-02-10T12:36:55","date_gmt":"2022-02-10T12:36:55","guid":{"rendered":"https:\/\/c1mdevsite.com\/braunability.com\/changes-for-the-child-tax-credit-do-you-qualify\/"},"modified":"2022-02-10T12:36:55","modified_gmt":"2022-02-10T12:36:55","slug":"changes-for-the-child-tax-credit-do-you-qualify","status":"publish","type":"post","link":"https:\/\/c1mdevsite.com\/mdctraining.ca\/changes-for-the-child-tax-credit-do-you-qualify\/","title":{"rendered":"Changes for the Child Tax Credit \u2013 Do you qualify?"},"content":{"rendered":"
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Some would agree that raising a family has never been more challenging than it is today. The costs of food, housing, utilities, clothing, and childcare have skyrocketed as the economy shifts and adapts to new global supply chain realities.\u00a0<\/span>\u00a0<\/span><\/p>\n

Luckily, every year during tax filing season, the U.S. government has given families a bit of hope and motivation. This is what we know as the Child Tax Credit, or CTC, and if you have children, chances are you are eligible! The experts at Waters Hardy & Co, P.C., provide accounting services, including tax preparation services, and can assist you in claiming your Child Tax Credit and maximizing your overall tax benefits.<\/span>\u00a0<\/span><\/p>\n

What is the Child Tax Credit (CTC)?<\/span><\/b>\u00a0<\/span><\/p>\n

\u00a0<\/span>The Child Tax Credit is an annual tax credit available to taxpayers with qualifying dependent children. The CTC was first introduced as part of the Taxpayer Relief Act of 1997. Since then, it has played an important role in providing financial support for American taxpayers with children. More specifically, the CTC provides money to American families to support the costs of raising their children or saving for their future.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>How Can Families Benefit from the Child Tax Credit?\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

\u00a0<\/span>Once families receive their Child Tax Credit, they are free to use the money as they wish. Some parents have used this money for some of their most basic needs, including food, rent, utilities, and costs related to childcare. Furthermore, studies show that for the most hard-pressed families, the CTC has reduced food insufficiency among low-income families by 25%. This has had a significant impact on lowering child poverty.\u00a0<\/span>\u00a0<\/span><\/p>\n

For middle-income parents, some have reported using their CTC for things such as a mortgage, car payment, or paying off credit cards. Families that don\u2019t have as many financial obligations or burdens report tucking their CTC money into a savings account.\u00a0<\/span>\u00a0<\/span><\/p>\n

How Did the Child Tax Credit Change for 2021?<\/span><\/b>\u00a0<\/span><\/p>\n

On March 11<\/span>th<\/span>, under the Biden administration, Congress passed the American Rescue Plan Act of 2021 as part of a $1.9 trillion aid package. This expanded the CTC and provided historic tax relief to the vast majority of U.S. families.\u00a0<\/span>\u00a0<\/span><\/p>\n

Here is how the CTC of 2021 was different than previous years.<\/span><\/b>\u00a0<\/span><\/p>\n