Child tax credit

For example, with the Child Tax Credit in the United States, only families making less than $400,000 per year may claim the full CTC.

Similarly, in the United Kingdom, the tax credit is only available for families making less than £42,000 per year.

All taxable income is tested for the credit, so a couple who both work and have children, will have both salaries taken into account.

On Monday 26 October 2015, the House of Lords voted for Labour Party proposals for financial redress to those affected by reduced entitlements.

[4] The proposed Build Back Better Act would extend the expansion for an additional year and make the full refundability of the CTC permanent.

[6] In 2021, a Columbia University study estimated that the expansion of the CTC in the American Rescue Plan Act reduced child poverty by an additional 26%, and would have decreased child poverty by 40% had all eligible households claimed the credit.