Congress expanded the Child Tax Credit through the American Rescue Plan Act in March 2021 to support families during the coronavirus pandemic recovery act. Important changes to the Child Tax Credit will help many families get advance payments of the credit starting this summer.
The American Rescue Plan Act increased the Child Tax Cr
edit amount from $2,000 per eligible child to $3,600 for those under age 6 and $3,000 for children age 6 through 17. Eligible individuals/families will receive a monthly payment of the advanced Child Tax Credit.
Eligibility requirements, including income thresholds and additional questions and answers can be found online at https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021.
The monthly amount is $300 per eligible child under age 6 and $250 per eligible child age 6-17. Payment dates are scheduled for July 15, August 13, September 15, October 15, November 15, and December 15 via direct deposit if a bank account is on file with the IRS. You will claim any additional credit or potentially repay any excess credit, when you file your 2021 income tax return. These changes apply to tax year 2021 only.
Families will have the option to opt-out of the advance Child Tax Credit to receive their eligible amount when filing their 2021 taxes.
By: Brenda Langdon
