The American Rescue Plan, signed into law on March 11, 2021, expanded the Child Tax Credit for 2021 to get more help to more families.
- It has gone from $2,000 per child in 2020 to $3,600 for each child under age 6.
- For each child ages 6 to 16, it’s increased from $2,000 to $3,000.
- It also now makes 17-year-olds eligible for the $3,000 credit.
- Previously, low-income families did not get the same amount or any of the Child Tax Credit. Under the American Rescue Plan, all families in need will get the full amount.
- To get money to families sooner, the IRS will send you half of your 2021 Child Tax Credit this year, starting in July.
- It will be broken up into monthly payments, which means payments of up to $300 per child under age 6 and $250 per child ages 6 to 17.
- You’ll get the remainder of the credit when you file your taxes next year.
For more information, visit: www.childtaxcredit.gov