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 – and most families will automatically receive monthly payments without having to take any action.
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 (also called Head of Household).
Major tax relief for nearly
all working families:
$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.
President Biden’s American Families Plan calls for extending this tax relief for years and years
The new Child Tax Credit enacted in the American Rescue Plan is only for 2021. That is why President Biden strongly believes that we should extend the new Child Tax Credit for years and years to come. That’s what he proposes in his American Families Plan.
Easy sign up for low-income families to reduce child poverty
If you didn’t make enough to be required to file taxes in 2020 or 2019, you can still get benefits.
Low-income families with children are eligible for this crucial tax relief – including those who have not made enough money to be required to file taxes.