Included in the most recent COVID-19 relief bill passed by Congress in March is a monumental expansion of the Child Tax Credit (CTC), a move that is estimated to cut child poverty in the United States nearly in half.
Here's some helpful information about the expanded CTC and how to find out if your family will benefit.
What is the amount of the expanded child tax credit?
Married couples who earn under $150,000, heads of household who earn under $112,500, and individuals who earn under $75,000 are eligible to receive the full amounts: $3,600 per child under the age of 6 and $3,000 per child ages 6-17. Couples or individuals earning above those income levels will receive reduced benefits.
What if I don't earn enough to qualify for the current child tax credit?
The expanded CTC is fully refundable, which means families with little or no income can now receive the full tax credit amount.
How will I receive this payment?
For those who are eligible, payments of $250 or $300 (depending on child's ages) will start to be sent out monthly in July, running through December. The remainder of the credit will need to be claimed on your 2021 tax return.
What determines how much my family will receive and how can I find out?
Your eligibility will be based on your 2020 or 2019 tax information. The deadline to file a 2020 tax return is May 17. You can use this tool to calculate how much you can expect.