(U.S.) The American Rescue Plan Act of 2021 expanded the Child Tax Credit for tax year 2021 and the changes made will involve advance payments to families starting in July.
The IRS says for tax year 2021, families claiming the Child Tax Credit will receive up to $3,000 per qualifying child between the ages of 6 and 17. They will receive $3,600 per qualifying child under age 6. Under the prior law, the amount of the Child Tax Credit was up to $2,000 per qualifying child under the age of 17.
Advanced payments will be made monthly from July through December to eligible taxpayers. The total of the advance payments will be up to 50-percent of the Child Tax Credit; monthly payments generally will be $250 per child ages 6 to 17 and $300 per childĀ under the age of 6. The remaining half of the credit will be claimed when filing your 2021 tax return in 2022.
Those who do not want to receive advance payments will have the opportunity to decline receiving the payments. The IRS will be providing more details on this process soon.
More information on the Advance Child Tax Credit payments can be found on the IRS website.