Help is Here: The American Rescue Plan Delivers Major Tax Relief for Families with Children.
The Child Tax Credit in the recently passed American Rescue Plan provides the largest Child Tax Credit ever. Most families will automatically receive monthly payments without having to take any action.
Some key points:
- The 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.
- The Plan also 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 (also called Head of Household).
- Instead of once a year relief, this credit will be in the form of automatic monthly payments, starting as early as July 2021, for nearly all working families.
- Monthly payments will continue through the end of 2021.
- 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.
- If you did not file a tax return in 2019 or 2020 and want to sign up for this credit, starting today (6.21.21) you can register below or Go to http://www.ChildTaxCredit.gov and click on the sign-up link.
Click here for more information.