Friday, Aug. 13, 2021
Are the changes to the child tax credit in the American Rescue Plan permanent?
The American Rescue Plan, a large package of economic relief measures enacted in March 2021, increased the maximum child tax credit from $2,000 to $3,000 a year for each child aged 6 to 17, and to $3,600 for each child under age 6. The legislation also reduced the threshold for receiving the tax credit — couples who make $150,000 or less and single parents who make $112,500 or less became eligible. Furthermore, the tax credit can now be received as an advance payment (a monthly check). These changes expire at the end of 2021 unless Congress extends the program. President Biden has said he wants to maintain the child tax credit expansions through 2025.
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Sources
- Investopedia Child Tax Credit Definition
- Investopedia What’s in the American Rescue Plan?
- White House Fact Sheet: The American Families Plan
- USA Today Biden administration wants to permanently extend Child Tax Credit expansion past the end of 2021
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