the additional child tax credit was introduced in 2014.
the additional child tax credit was introduced in 2014.
when was the additional child tax credit introduced?
2014
since 2018, the child tax credit is $2,000 per qualifying child. when first introduced in 1998, the per-child amount was originally capped at $400, and then at $500 in 1999, by the taxpayer relief act of 1997. the economic growth and tax relief reconciliation act of 2001 (egtrra) would have gradually increased the cap from $600 in 2001 to $1,000 in 2010, before reverting to $500. however, the jobs and growth tax relief reconciliation act of 2003 (jgtrra) increased the amount to $1,000 for 2003 and 2004. the working families tax relief act of 2004 extended this amount through 2010. the tax relief, unemployment insurance reauthorization, and job creation act of 2010 extended this $1,000 cap through the end of 2012. the american taxpayer relief act of 2012 made the $1,000 cap permanent.
child tax credit
in general, the child tax credit is nonrefundable. in theory, because this is a tax credit and not a refund, if a person's tax liability is less than the credit value, any unused credit is lost. in practice, this problem affected a relatively small number of very low-income families, but they could access this unused portion under a related refundable program called the "additional child tax credit." beginning in 2018, any unused ctc is refundable up to $1,400 (calculated as 15% of the family's earned income).
child tax credit