Fast Facts on the Child Tax Credit

Family earnings will be supplemented and child poverty will be drastically reduced with The American Rescue Plan’s expansion of the Child Tax Credit. Here’s what you need to know: 

• It now includes 17-year-olds.

• It increased from $2,000 to $3,600 for children under age 6 or $3,000 for children ages 6-17. The following income limitations apply:

  • $150,000 for married taxpayers filing a joint return

  • $112,500 for heads of household

  • $75,000 for all other taxpayers

• Do you live in Puerto Rico or another US Territory? Not to worry. The Child Tax Credit now covers these areas.

• In 2021, you can get an advance payment from July 1, 2021 - December 21, 2021. 

Right now, eligible taxpayers do not need to take any action other than filing their 2020 tax return if they have not done so.

Starting in July of 2021, the IRS should have online portals open where taxpayers can update their current information for babies born in 2021 as well as opt out of advance payments if they wish to do so.