Since its inception in 1997, the Child Tax Credit (CTC) has undergone various changes to reach its current form. The credit was originally designed to provide a general tax reduction for families with dependent children under the age of 17, without particular emphasis on a family’s level of income. Over the past decade, the CTC has expanded to account more specifically to families of different sizes and to families close to, or below, the federal poverty line. Currently, families below certain income levels are allowed a credit against their federal income tax of up to $1,000 per child, which is also currently refundable under certain conditions. First Focus believes that changes made to the CTC around refundability and provisions for families with more than three children are critically important improvements that should be preserved.
