The expansion of the CTC, included in President Biden’s American Rescue Plan, was one of the largest-ever single-year tax cuts for families with children. It dramatically increased the value of the CTC from $2,000 per child to up to $3,600 per child under age 6 and $3,000 per child between age 6 and 17, putting money in the pockets of low- and middle-income families to pay for household expenses like food, rent, utilities and child care.

As part of the expansion, half of the CTC was distributed in advance via monthly payments, helping families meet their financial needs in real time. Qualifying families received monthly checks from July through December 2021 and will receive the remainder of the credit when they file their 2021 taxes. Because the CTC was made fully refundable, previously ineligible low-income families could receive the full credit. More than 61 million children from over 36 million families received a total of nearly $93 billion in advance Child Tax Credit payments in 2021. The average advance CTC payment per household was $444 in December.

Read the full brief here.

Read a fact sheet elevating key takeaways here.