Committee for a Responsible Federal Budget

Build Your Own Child Tax Credit

Dec 21, 2021 | Taxes

As the year comes to a close, lawmakers continue to discuss if and how to extend the American Rescue Plan's one-year Child Tax Credit (CTC) expansion. For 2021, the maximum CTC was increased from $2,000 to $3,000 ($3,600 for children under age 6), made fully refundable so those without earnings or taxes owed could collect it in full, and issued through monthly payments. Permanently extending this expanded version of the CTC could cost as much as $1.6 trillion over ten years. However, policymakers have numerous options to reduce or defray those costs.

Our brand new Build Your Own Child Tax Credit model allows you to design your own CTC policy and estimates the ten-year cost of your customized policy.

Note: we updated our CTC model on January 6 — the updated blog describing the changes can be found here, but all the links in this blog will also navigate to the new version of the model.