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