2021 Child Tax Credit Changes Under The American Rescue Plan Act
The American Rescue Plan Act changed the way that the Child Tax Credit is paid to eligible parents for 2021. Instead of being claimed as a credit on your income tax return as was previously the case, starting this month, one-half of the amount of the credit will be paid monthly via a direct deposit to your checking account or a physical check mailed to you. The amount of the credit will also increase to $3,600 for children under the age of 6 and $3,000 for children ages 6 to 17. The credit was only $2,000 prior to this change.