2021 Enhanced Child Tax Credit

Starting July 15th, eligible taxpayers will begin to receive monthly payments of the Enhanced Child Tax Credit, part of the American Rescue Plan, through December 15th, 2021. Under the plan, the Child Tax Credit was expanded to $3,600 for each child under age 6 and $3,000 for each child between ages 6 to 17.


Families will only qualify for the expanded credit if they fall below certain income thresholds:


$75,000 or less for single taxpayers

$112,500 or less for head of household

$150,000 or less for married couples filing a joint return and qualified widows and widowers.


Families that have income about these thresholds are still eligible for a reduced credit of $50 less for every $1,000 over the respective threshold.


For families that meet the income threshold, the monthly payments will amount to:


$300 per month for each child under 6

$250 per month for each child between 6 and 17


Website to check whether taxpayers qualify is: Child Tax Credit Eligibility Assistant


Taxpayers will be able to opt out via an online tool located here: Child Tax Credit Update Portal


The Portal will be updated later this year to allow people to see their payment history and change their bank account information or mailing address.


These payments will need to be reported to the IRS on your 2021 income tax return.


Read ful article here: https://www.cbsnews.com/news/child-tax-credit-1800-dollars-opt-out-2021-06-23/



Breunig CPA, LLC