Stimulus Update Child Tax Credit Details

Are you interested in learning more about the changes to the Child Tax Credit? We’ve got you covered! Find out the facts about the Stimulus Update: Child Tax Credit Details in this informative article. We’ll break it all down for you so you can make sure your family will benefit from this policy change.
Stimulus Update: Child Tax Credit Details
Stimulus Update: Child Tax Credit

Good news parents – the recent stimulus update means that you may be entitled to receive a larger child tax credit in 2021! On March 11th, President Biden signed the American Rescue Plan Act of 2021 into law, providing an additional $1,000 child tax credit per child for the 2021 tax year. This means that your eligible children under the age of 6 could see a total tax credit of up to $3,000.

You’re likely to benefit from this new expansion if you’re expecting to make too much to qualify for the full refundable credit, which previously was set at $2,000 per child. The new law provides an additional $1,000 for children under 6 and gives more families access to the full $3,000 available. Here are the requirements:

  • You must be the taxpayer claiming the child, as a dependent on your tax return
  • The child must be under the age of 6 on December 31, 2021
  • Your Modified Adjusted Gross Income (MAGI) must not exceed the limits of the credit
  • You must have a valid Social Security Number for the child claiming the credit

The best part is that starting in July of 2021, the IRS will begin to make payments to your bank account in monthly or lump sums throughout the year. Be sure to get the informations you need to get the most out of the expanded child tax credit expansion.

We hope this article has provided you with the information you need about the new Child Tax Credit changes. With the right information, you can make more informed decisions about your finances. Until then, stay informed to keep up with the ever-changing stimulus regulations.

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