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Child Tax Credit 2021: Who gets $3,600 and 5 other must-know key facts.

Child Tax Credit 2021: Who gets $3,600 and 5 other must-know key facts.

The COVID-19 relief bill with an expanded Child Tax Credit(CTC) is waiting for President Biden's signature on Friday.

Child Tax Credit 2021: Who gets $3,600 and 5 other must-know key facts.

The $1.9 trillion stimulus bill has aimed at boosting up the pandemic-stricken American economy through tax bills tried-and-true fiscal measures like expanded unemployment aid and direct stimulus checks 3,000 per child. But the legislation of 2021 child tax also includes a relatively basic measure to children ages and children aged 17 that offers a form of guaranteed income to the parents of children aged 17, or what one expert calls "a baby step toward universal basic income for families with children."The head of household is waiting for eligibility requirements. The Govt. should pay the parents of a child under the age of monthly payments to the American rescue plan act. This amount should be fully refundable from 3,000 or 3,600.

That's because the  Covid-19 relief bill includes a renewal of the Child Tax Credit (CTC), a 24-year-old part of the nation's tax law that today primarily benefits the middle class- and rich families. The American Rescue Plan(ARP) renews the CTC by expanding the benefit from $2,000 annually to as much as $3,600 per child. It also adds more low-income households and doles out the credit's benefit through monthly encashments. The people should show it in 2020 tax return couple earnings.

At a low level, the Child Tax Credit(CTC) is a credit that goes to parents and caretakers can claim to help minimize their tax bill, depending on the numbers and ages of their dependents. For many, it may provide a much-needed source of relief and as an integral part of a 2020 tax year refund. 

The CTC right now is a  bill of  $2,000 dollars credit that goes to parents who can claim on their taxes for every child under the age of 17 (the same age range for child dependents that was used for the first and second stimulus checks and balance). And if that credit increases the amount of applied taxes that a family actually have, parents can still receive up to $1,400 dollars of the balance as a refund; this is technically referred towards the Additional Child Tax Credit or refundable CTC. For example, a married couple with children ages of  5 years , 10 years  and 12 years would receive a total child tax credit of 6,000 dollars -- unless they're due a refund, in which case they'd receive $4,200.

What's changing under Biden's plan? 

The American Rescue Plan(ARP) will give more money for a short while to families after the president signs the bill. Here's everything that changes:

Credits increase from $2,000 dollars to $3,600 dollars per minor child under 6 years and $3,000 dollars for children older than 6 years.

The credit would also be fully refundable for the parents.

Money from the credit will be minimized: Half will be paid through the tax refundable and the other half will be paid monthly from July to December.

There is no $2,500 earnings floor.

Families in Puerto Rico can receive the credit.

Am I eligible for the Child Tax Credit?

Families with kids under 6 years age  would receive up to $3,600  per child under the new COVID-19 relief bill. Families with children under aged 17 and under would receive a credit of $3,000 per child(dollar). Families with older kids are also eligible for this relief: Everybody can claim $500 for each child aged between 17 and 18, or for full-time college students between the ages of 19 and 24.

The tax credit applied to children who are considered intelligently related to you and reside with you for at least six months out of the year.

Note that though the eligibility and requirements that needed are relatively wide, higher-income rich families may receive a less credit. But married couples filing jointly with an adjusted gross income under $400,000 dollars are eligible for the full amount, as are individuals with an AGI under $200,000 dollars. 

The size of the credit would start to phase out for single people earning more than $75,000 dollars a year, heads of household earning more than $112,500 dollars a year and married couples earning more than $150,000 dollars a year. 

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