COVID-19 Recovery Center

Child Tax Credit

The American Rescue Plan’s expansion of the Child Tax Credit will substantially reduce child poverty by supplementing the earnings of eligible families. You can find more information below, including if you qualify and how to receive the tax credit.

Amount & Eligibility

Enhanced Child Tax Credit Amounts

The American Rescue Plan increased the Child Tax Credit substantially for eligible families and expanded the credit’s scope to cover children 17 years old and younger. The new enhanced Child Tax Credit amounts for qualifying households are:

The Child Tax Credit is now fully refundable, meaning that people who qualify can receive the full credit as a tax refund, even if they do not earn an income or have tax liability.

Child Eligibility

The eligibility criteria to receive the Child Tax Credit has remained the same:

• The child must be a U.S. citizen, national or permanent resident, and have a Social Security Number
• You must claim the child as a dependent on your 2021 tax return
• You must put the child’s name, date of birth, and Social Security Number on the return.

Income-Based Eligibility

The Child Tax Credit has income-based eligibility requirements. You can find the qualifications based on your Adjusted Gross Income (AGI) level, tax filing status, and child’s age here:

The enhanced tax credits ($3,600 for children under 6; $3,000 for children aged 6-17) begin to phase out at the adjusted gross income levels listed above. The amount of the credit will be reduced by $50 for each $1,000 (or fraction thereof) of income over the applicable threshold amount.

Families who aren’t eligible for the enhanced payments, but who have income below $400,000 on joint returns or $200,000 on individual returns are still eligible to claim the regular credit of $2,000 per child, less the amount of any advance payments they get. The amount of the credit is reduced by $50 for each $1,000 (or fraction thereof) of income over the applicable threshold amount.

You can use this Child Tax Credit Calculator to find out if you are eligible and how much you can expect to receive.

Receiving Your Child Tax Credit

Advanced Payments (2021)

The IRS will make advanced payments accounting for half of a family’s 2021 child tax credit. These payments will be made by the IRS in monthly payments from July 1 to December 31, 2021, allowing eligible families to receive financial assistance immediately. The full payment schedule is below:

The amount a family receives each month will vary based on the number of children in the family, the ages of the children, and the amount of the family’s adjusted gross income. Families will receive half of their full credit in advanced monthly payments. For example, a family who qualifies for $3,600 (one child under six years old), will receive six monthly payments of $300, for a total of $1,800.

Tax Credit Payments (2022)

The half of the Child Tax Credit payment which is not being distributed through the advanced payments in 2021 will be applied as a credit to your 2021 tax returns, which are filed in 2022. The remaining tax credit may reduce your tax burden or lead to a tax refund.

You will also be able to use an IRS online portal to request 100% of the Child Tax Credit as a refund next year and forego the monthly payments.

Submitting Tax Returns

• If you filed in 2019 or 2020: You should not have to file an amended return to receive the Child Tax Credit.
• If you are a non-filer: You will need to submit a 2020 tax return so the IRS is aware of how many dependents you have who count towards the tax credit.
• If relevant information changed: The IRS will establish an online portal for taxpayers to update relevant data for mid-year payment adjustments (for example, the birth of a child during 2021).