ITEP Data on Child Tax Credit and Pre-Congress Earned Income Tax Credit Provisions – ITEP

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Congress expanded the Child Tax Credit (CTC) and Income Tax Credit (EITC) for 2021 as part of the American Rescue Plan Act (ARP). The additional benefits millions of families and workers have received under this law will end this month if Congress does not act quickly.

The expansion of the CTC increased the annual tax credit per child from $ 2,000 to $ 3,000 for children six years of age and older and from $ 3,600 for children under six. The law also made the credit fully refundable, meaning children in low- and moderate-income households now receive the full value of the credit. The expansion of the EITC did not make the headlines in the same way that the CTC did. But ARP has expanded the value of this credit for low-income people with no dependents and allows workers under 25 and over 64 to apply for the EITC for the first time in 2021.

The Build Back Better Act currently before Congress would extend these improvements in the CTC and EITC until 2022 and make some of them permanent. ITEP has published several estimates relating to these provisions, which are consolidated in a spreadsheet downloadable below.

DOWNLOAD NATIONAL AND STATE-BY-STATE ESTIMATES

Below are some ITEP publications that explain the CTC and EITC provisions in more detail.

Build Back Better Tax Credit Reforms Would Benefit a Diverse Group of Families
This report is a combined analysis of the impact of CTC and EITC on families across the income spectrum.


A data-driven case for CTC expansion in the recent Ways and Means Committee proposal
This blog analyzes the number and proportion of children nationwide and in each state who would benefit from an extension of the provisions making the CTC fully refundable.


Child tax credit is a critical part of the Biden administration’s clawback program
This blog shows how many children will benefit in 2022 if Congress extends the CTC’s expansion. It includes a distribution chart showing the increase in average income across the economic spectrum for the families that benefit and also highlights the children who will be left behind if Congress does not act.


Almost 20 million people will benefit if Congress makes EITC improvement permanent
This analysis reveals the impact of the expansion of the EITC on low-income households.



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