How Much Is the Child Tax Credit: Everything to Know Amid the Website Relaunch
01/25/2022 10:31 pm EST
How Much You Get
The previous child tax credit amount was around $2,000 per child, but the American Rescue Plan has increased that to "$3,000 per child for children over the age of six." Additionally, parents received "$2,000 to $3,600 for children under the age of six." Finally, the ARP "raised the age limit from 16 to 17."
Who Qualified?
To qualify for the 2021 Child Tax Credit payments, there were a couple of income factors involved. First, a couple who files their taxes jointly and earns up to $150,000 annually would have qualified to receive the payments. For single-parent households, all families with a Head of Household tax-filer who earned up to $112,500 a year would also have qualified for the payments.
How To Get Your Payment
Families who qualify should have received a letter notifying them of their eligibility for the Child Tax Credit payments. These individuals did not have to do anything, as is the case for those who've already provided direct deposit info to the IRS. The payments were made automatically. For those who did not earn enough to file taxes in 2019 or 2020, there was a non-filer tool where they could provide their info and check eligibility.
When Did The Payments Begin
The Child Tax Credit payments began on July 15th. According to the Biden administration, almost all eligible families should have start seeing payments made via direct deposit on this day. The White House added that the initial payments would be around $250 to $300 per child.
How Long Did The Payments Last?
After the first payments in July, families received monthly payments on the 15th of each month through December. However, the Child Tax Credit checks did not happen in January. This was due to President Biden's nearly $2 trillion Build Back Better plan loosing the support it needed to move forward. West Virgina Senator Jon Manchin (D) pulled out of supporting the bill, which kept it from having the number of Senate votes needed to move forward. Now, families can claim the remainder of their Child Tax Credit amount through their tax filings.
Child Tax Credit Extension Plan
According to the White House, "The new Child Tax Credit enacted in the American Rescue Plan is only for 2021. That is why President Biden strongly believes that we should extend the new Child Tax Credit for years and years to come. That's what he proposes in his American Families Plan." At this time, there is no word on what it may take to get U.S. Congress to pass the AFP.
This Is Not Another Stimulus Payment
Finally, it should be noted that the Child Tax Credit payments are not the fourth round of stimulus payments related to the Covid-19 pandemic. There have been discussions of another stimulus package that would provide new payments to most Americans, but at this time there is no official word on whether or not this will happen.
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