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Information on the American Rescue Plan Child Tax Credit

How Much are the Child Tax Credit Payments?

The American Rescue Plan expanded the Child Tax Credit to up to $3,600 per child for children ages 0 to 5 and $3,000 per child for children ages 6 to 17.

The American Rescue Plan also authorized advance monthly payments of the Child Tax Credit through December 2021. The Internal Revenue Service (IRS) anticipates beginning monthly payments as soon as July, with those monthly payments running through December. Qualifying families can get up to:

  • $300 a month per child for children ages 0 to 5
  • $250 a month per child for children ages 6 to 17

Families will receive their remaining expanded Child Tax Credit when they file their 2021 tax return in 2022.

Who Qualifies for the Child Tax Credit Advance Monthly Payments?

Families will qualify for a full credit if their income is below $75,000 for single filers, $112,000 for people filing as head as household, or $150,000 for people who are married and filing jointly. The credit will phase out for taxpayers who make more money and cease for individuals earning $95,000 and married couples earning $170,000 filing jointly.

To be eligible, children must:

  • Have a Social Security number,
  • Live with you for at least half the year,
  • Be under the age of 18 as of December 31, 2021, and
  • Be claimed on your tax return.

Children are eligible if they are your children, adopted children, step-children, half-siblings, foster children, grandchildren, nieces or nephews, or other certain relatives. The adult filing taxes must have a Social Security Number or and Individual Taxpayer Identification Number.

How Can Families Get Help Preparing and Filing Their Taxes for Free?

Free tax preparation services are generally available until the tax filing deadline. Families should file their taxes before the May 17th deadline even if they do not have earnings to report or do not normally file, because the IRS needs information from tax returns in order to calculate and issue monthly advance payments.