The IRS has unveiled a new website for eligible Americans to take advantage of the expanded tax credit – a part of last year’s ‘American Rescue Plan Act’ signed into law by President Joe Biden.
The majority of families will receive $3,000 per child ages 6-17 years old and $3,600 per child under 6 as a result of the increased 2021 Child Tax Credit.
Here is some important information to understand about this year’s Child Tax Credit:
- Increased amount: The American Rescue Plan significantly increased the amount of Child Tax Credit a family could receive for 2021, typically from $2,000 to $3,000 or $3,600 per qualifying child. It also made the parents or guardians of 17-year-old children newly eligible for up to the full $3,000.
- Income eligibility: All eligible families can receive the full credit if they made up to $150,000 for a married couple or $112,500 for a family with a single parent in 2021.
- Advance monthly payments: The American Rescue Plan—for the first time ever—provided tens of millions of families with advance monthly payments between July and December of 2021 worth up to one-half of their estimated full annual credit amount.
- Your remaining credit: Families, including those who received part of their Child Tax Credit as monthly payments last year, can get their remaining Child Tax Credit by filing a tax return this year.
- Non-taxable: The Child Tax Credit, including the monthly payments received last year, are not taxable.
- Does not affect other benefits: Receiving the Child Tax Credit will have no impact on anyone’s eligibility for, or lower the amount, of other federal benefits.
- File your taxes to receive your full credit: If you qualified for monthly Child Tax Credit payments but did not receive them, you will receive the full credit amount when you file your tax returns.
- For parents and legal guardians: Anyone, including grandparents, who are legal guardians may be eligible for the Child Tax Credit.
Click here to find out if you’re eligible. Click here to claim you tax credit.
