Ref: American Rescue Plan Act, March 2021
In March 2021, Congress made a one-year change to the child tax credit: Increased to $3,600 for children five and younger and to $3,000 for children six to seventeen. THIS CHANGE IS ONLY FOR 2021.
The IRS is also set to auto-pay half of the credit monthly based on your 2020 tax filing.
Caution:
- If your 2021 modified adjusted gross income is above $75,000 for single; $150k for married-joint or $112,500 for head-of-household filers, you will not qualify for the full credit and may have to pay some back when you file the 2021 return.
- If you get the credit pre-paid to you on a monthly basis, it won’t be there when filing the return for 2021.
If you want to OPT OUT of receiving prepayment of the credit, Google search the IRS’ web page for “Child Tax Credit Update Portal” and unenroll from advance payments.
