# Child Tax Credit

*Taxes — Finicade finance glossary*

The Child Tax Credit reduces tax for each qualifying child, with part of it refundable so lower-income families receive value even with no tax owed. It phases out above income thresholds keyed to MAGI. Its temporary 2021 expansion — larger, fully refundable and paid monthly — cut US child poverty sharply and lapsed the following year, making it one of the clearest natural experiments in modern tax policy.

**Also known as:** CTC, child benefit

**Related terms:** [Tax Credit](https://finicade.com/glossary/tax-credit), [Refundable Tax Credit](https://finicade.com/glossary/refundable-tax-credit), [Dependent](https://finicade.com/glossary/dependent), [Earned Income Tax Credit](https://finicade.com/glossary/earned-income-tax-credit), [Modified Adjusted Gross Income (MAGI)](https://finicade.com/glossary/modified-adjusted-gross-income)

Source: https://finicade.com/glossary/child-tax-credit