Child Tax Credit
The American Rescue Plan – a government plan to give financial aid to people across the United States after the COVID-19 pandemic – is increasing 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 child age limit was also raised from 16 to 17.
What does this mean?
All working families will get the full tax credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent.
The tax credits will be broken up into monthly payments – which means payments of up to $300 per child under age 6, and up to $250 per child ages 6 to 17.
Can I get it in a lump sum when I file my 2021 taxes?
Yes, you can choose to not receive monthly payments and have the full tax credit put towards your 2021 taxes.
To opt-out of the monthly payments, or to un-enroll, visit the IRS Child Tax Credit Update Portal. If you choose to not receive monthly payments, you’ll get the full Child Tax Credit as a lump sum next year when you file your tax return.
How do I get the new Child Tax Credit?
If you filed tax returns for 2019 or 2020, or if you signed up to get a COVID-19 stimulus check from the Internal Revenue Service (IRS), you will automatically get this tax relief. You do not need to sign-up.
If you didn’t file taxes or sign up to get stimulus payments, you can still get benefits if you have at least one child and earn less than $24,800 as a couple or $18,650 as a single parent.
Use the IRS Non-filer Sign-up Tool to get the Child Tax Credit and get stimulus payments.
What you need to sign-up:
- Social Security Social Security numbers for you and your children
- Your mailing address
- Your e-mail address
- Your bank account information (optional)
