For those with children, the American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six, and raised the age limit from 16 to 17. All working families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent.
WHAT TO KNOW:
$3,000 to $3,600 per child for nearly all working families
The Child Tax Credit in the American Rescue Plan provides the largest child tax credit ever and historic relief to the most working families ever.
- $3,000 per child 6-17 years old
- $3,600 per child under 6 years old
- All working families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent (also called Head of Household)
Automatic monthly payments for nearly all working families
If you’ve filed tax returns for 2019 or 2020, or if you signed up to receive a stimulus check from the Internal Revenue Service, you will get this tax relief automatically. You do not need to sign up or take any action.
- Advancing your tax relief: Normally, tax relief for the year only comes the following year when you file your taxes, no matter how much you need it now. This year, you’ll start getting the money in July.
- Monthly payments starting in July: For the first time, people will receive the Child Tax Credit in monthly payments. For every child 6-17 years old, families will get $250 each month, and for every child under 6 years old, families will get $300 each month.
- The 80% who get their refunds from the IRS through direct deposit will get these payments in their bank account on the 15th of every month until the end of 2021.
- People who don’t use direct deposit will receive their payment by mail around the same time.
The Child Tax Credit means help directly in the bank accounts of the families who need it. Nearly all working families will automatically get monthly payments starting July 15th – no action needed. Head to https://t.co/P2RRSAlEgx for more information. pic.twitter.com/U1eSsBi18p
— President Biden (@POTUS) June 21, 2021
Get more info HERE.