Read more: Monthly Child Tax Credit CalculatorHow Has the Child Tax Credit Evolved Through the Years? The original Child Tax Credit was a nonrefundable $400 tax credit per child under 17. Unlike a refundable tax credit, which generates a tax refund even if you do not owe any taxes or reduces the amount you owe, a nonrefundable tax credit only reduces the taxes owed. The Child Tax Credit continued to evolve over the years, becoming a refundable tax credit in 2001. Biden has proposed to extend the expansion of the increased Child Tax Credit to 2025 and make it a fully refundable child tax credit permanently through the American Families Plan.

Source: Forbes August 02, 2021 18:42 UTC