Family Tax Credits in the American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act (ARRA) provides substantial new tax benefits for most working families. All of the provisions discussed in this report are at least partially refundable, so they will help low- and moderate-income workers with little or no federal income tax liability. This makes them more effective as economic recovery measures because lower-income people are more likely to spend additional income to purchase goods and services in their community. And, they will help keep millions of Americans out of poverty as the recession worsens.