The American Rescue Plan expands the Child Tax Credit to provide additional financial support and reach more families during tax year 2021. The expanded credit will:
- Provide families with up to $3,600 per child this year. Previously, the maximum amount of the credit was $2,000.
- Reach 39 million households. By making the credit fully refundable, nearly 90% of all American children will now benefit from the credit.
- Be distributed in advance payments starting July 15. Monthly payments will go through December and the rest of the credit will be claimed when families file their 2021 taxes.
What Should I Expect?
You will receive the maximum amount of the credit if your income is at or below:
- $150,000 for couples
- $112,500 for most single parents
The amount that you receive through the credit will begin to phase out, or decrease, for incomes above these thresholds.
When Should I Expect the Credit?
Part of the 2021 Child Tax Credit will be issued in monthly checks from July through December. The remaining amount will be applied when families file their 2021 tax returns.
Families that do not want to receive the 2021 Child Tax Credit in advance monthly payments can opt out through the IRS.
IRS Information:
The IRS is has created two websites for the monthly Child Tax Credit:
- The first allows eligible non-filers to sign up to receive the monthly payments. Eligible non-filers include those who did not file a 2020 or 2019 tax return with the IRS and those who did not use the EIP non-filer portal in 2019. The portal can be found here.
- The second allows eligible filers to provide updated information, such as a change in the number of qualifying children, a change in marital status, or a change in income. This portal allows parents to opt out of receiving monthly payments. This portal can be found here.
For assistance with these portals, my office is available to help you. You can reach us here.
Resources:
IRS: Child Tax Credit Non-Filer Sign-Up Tool
IRS: Child Tax Credit Manage Payment Portal
IRS: Additional Information on the Child Tax Credit
White House: Additional Information on the Child Tax Credit
What’s Next?
Representative Suzan DelBene is fighting to make this benefit permanent. Long-term, the expanded Child Tax Credit is estimated to lift 4 million children across the country out of poverty, cutting childhood poverty in half. In Washington state, the expansion is estimated to benefit 1.4 million children and reduce childhood poverty by 40 percent.
