4 Changes to the Child Tax Credit , That Are Part of Biden's American Rescue Plan.
President Joe Biden signed the $1.9 trillion COVID-19 relief legislation into law on Thursday afternoon.
Here are four changes to the child tax credit this year.
1, There is a significant increase in the amount.
The tax credit has been increased from a single amount of $2,000 to either $3,000 or $3,600 depending on the age of the child.
2, The age range has changed.
Rather than a flat credit for children 17 and under, children six and under are credited with the larger amount, with $3,000 being credited to older children up to the age of 17.
3, The child tax credit is now fully refundable.
This is different from prior tax seasons in which the credit was partially refundable.
4, The way the credit is dispersed has changed.
Rather than a lump sum, if families receive a refund, the child tax credit will be dispersed as periodic payments beginning as soon as July
