Families are the foundation of a healthy society. The Child Tax Credit (CTC) is a longstanding bipartisan, pro-family policy that addresses the unique responsibilities and costs of raising children. The CTC is designed to offer families flexibility in meeting the needs of their household while also ensuring income stability.
Right now, families must use their current year’s earnings to determine how much of the credit they qualify for. However, this means that families who have a temporary loss of income in one year would lose out on the CTC’s income-stabilizing assistance. A modest change in CTC’s design – the inclusion of a “lookback” provision – will help families who experience a temporary loss or drop in income and protect parents’ flexibility to meet their family responsibilities.
We encourage readers to read the full story brief linked below to gain a better understanding of how the proposed changes to the CTC would benefit families.
