The year 2022 affected many families’ finances in the USA, with higher prices for grocery items and gas due to Russia’s invasion of Ukraine and related economic sanctions.
As the US began to recover from the pandemic, a cost-of-living crisis emerged, affecting citizens from lower and middle classes. This led to a rise in the use of welfare benefits, such as SNAP.
Despite the federal government not issuing additional stimulus checks, some state leaders provided monetary assistance through stimulus payments or tax credits.
As the new year begins, it is wise to anticipate potential interest rate increases from the Federal Reserve to control inflation. To take advantage of this, utilizing government programs such as the Child Tax Credit (CTC) through the American Rescue Plan, which has increased the credit amount for 2021, may be helpful for you and your family.
In 2021, the American Rescue Plan expanded the Child Tax Credit (CTC), raising the benefit from $2,000 per child under 17 to $3,000 per child under 18, and increasing it further to $3,600 for children under 6 years old.
Unfortunately, the Marca reported on January 13, 2023 that the maximum amount that can be claimed for the Child Tax Credit (CTC) per qualifying child will remain at $2,000 in 2023, with a maximum refundable amount of $1,540.