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The rollout of funds for the expanded child tax credit began on July 15, with the IRS sending out letters to 36 million families believed to be eligible to receive them. Families can expect the ...
The child tax credit under the Tax Cuts and Jobs Act of 2017. Top plateau would be higher for more children. Under the Tax Cuts and Jobs Act of 2017 (TCJA), for the years 2018–2025 (excluding 2021, see below section Temporary Expansion in 2021) the CTC allows taxpayers to reduce their federal tax liabilities by $2,000 per qualifying child (see Eligibility).
The maximum credit in 2021 is $3,600 for children under 6 and $3,000 for children between 6 and 17. Previously, the maximum tax credit was $2,000 per child under 17.
The official name of the Child Tax Credit letter is “Letter 6419, 2021 advance CTC.” It will be mailed starting in late December and continuing into January.
The child tax credit is based off of your 2020 taxes, meaning that when you go to file your 2021 returns, an income change could set off a tax bill. If this is the case, you will be required to ...
The American Rescue Plan Act (ARP) of 2021 significantly expanded the child tax credit for one year, allowing qualifying families to offset $3,000 per child up to age 17 and $3,600 per child under age 6. It also made the credit fully-refundable and offered the option of receiving half of the credit as six monthly payments. 39 million households ...
If you received the advance Child Tax Credit payments this year, keep an eye on your mailbox: The IRS will be sending a letter detailing how to account for the payments on next year's taxes. Learn...
The IRS urged extra caution for those who received money through the advance child tax credit and the third stimulus payment in 2021.