10 Things You Need To Know About The New $3,000 Child Tax Credit

On Thursday, President Joe Biden signed into law the $1.9 trillion American Rescue Plan Act. 

In addition to the $1,400 stimulus check, the bill also includes a new $3,000 child tax credit. 

Below you will find 10 things you need to know about the new child tax credit. 

1. Families with children under the age of 6 will receive an annual benefit of $3,600 per child.
2. Families with children ages 6 to 17 will receive an annual benefit of $3,000 per child.
3. Individuals who earn up to $75,000 will receive the full child tax credit.
4. Couples who earn up to $150,000 will receive the full child tax credit. 
5. Families living in U.S. territories and Puerto Rico qualify for the child tax credit.
6. The child tax credit is fully refundable.
7. The new provision allows for households with no income to receive the child tax credit. 
8. Child tax credit payments are expected to be distributed in estimated monthly payments of $250.
9. The IRS could begin distributing payments as early as July 2021.
10. The new provision of the child tax credit is only temporary. The increase is only guaranteed for the 2021 tax year. 

For more scoop visit IRS.gov.