The American Rescue Plan Act of 2021 expanded the Child Tax Credit (CTC) for 2021, providing eligible families with a significant financial boost.
Key Points:
- The maximum CTC amount increased to $3,600 per qualifying child under age 6 and $3,000 per qualifying child aged 6-17.
- Eligible families could receive up to $3,600 per child under age 6 and $3,000 per child aged 6-17 through advance monthly payments or a lump sum at tax time.
- The expanded CTC significantly reduced child poverty, lifting an estimated 3.7 million children out of poverty in December 2021.
- The CTC expansion is widely recognized as a critical component of the successful COVID-19 economic recovery response.
Expanded Child Tax Credit Details
Eligibility:
- The CTC is available to taxpayers who meet certain income requirements and have qualifying children.
- For 2021, the income limits were:
- $75,000 for single filers
- $112,500 for head of household filers
- $150,000 for married couples filing jointly
Credit Amount:
- The maximum CTC amount for 2021 was:
- $3,600 for children under age 6
- $3,000 for children aged 6-17
Advance Monthly Payments:
- For the first time, the CTC was paid out in advance monthly payments from July to December 2021.
- Eligible families received up to:
- $250 per month for each qualifying child age 6 to 17
- $300 per month for each qualifying child under age 6
Impact of the Expanded CTC:
- The expanded CTC had a significant impact on reducing child poverty.
- In December 2021, the CTC kept an estimated 3.7 million children out of poverty.
- The CTC also provided much-needed financial assistance to families struggling during the COVID-19 pandemic.
The expanded CTC was a critical component of the successful COVID-19 economic recovery response. It provided eligible families with a significant financial boost, reducing child poverty and supporting economic recovery. The CTC expansion is a testament to the power of targeted government assistance in addressing pressing social and economic challenges.
New 2024 Payments for Millions, Child Tax Credits, & Breaking News
FAQ
How much was the third stimulus check per child?
How much was the second stimulus check per child?
Did they pass the $3600 Child Tax Credit?
How much is the Child Tax Credit for 2024 per child?
How much money does a child receive per month?
Distributed monthly, this means eligible families will receive up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above. Two-earner households earning up to $400,000 annually would still receive periodic payments as well, totaling $2,000 per child.
How many rounds of stimulus checks are there?
Update: Three rounds of stimulus checks. See how many went out and for how much. Update: Three rounds of stimulus checks. See how many went out and for how much. The information on this page was updated on February 9, 2023 to include the December 31, 2021 data.
Can you get a stimulus check if you don’t file your tax return?
Families that neither filed tax returns nor gave the I.R.S. their information for stimulus checks can register online for the monthly payments using a special “non-filer sign-up tool.” “You must take action if you have not filed your 2020 tax return or 2019 tax return,” the I.R.S. says on a website devoted to the child tax credit.