I was wondering if I have already filed my taxes for 2020, and once the administration signs the $1.9T stimulus package. Where one part of the stimulus package would increase from $2,000 to $3,600 the credit for children under 6 years old, and to $3,000 for older children (see exerpt below).
Is this applied to next years taxes when I file or would this effect the taxes I just filed a couple weeks ago for 2020?
Child tax credit
The bill would expand the child tax credit in 2021, a move that Democratic lawmakers and economists say could substantially reduce child poverty. Democrats are hoping to make the expansion permanent in future legislation.
The measure would increase from $2,000 to $3,600 the credit for children under 6 years old, and to $3,000 for older children. The additional amount would phase out for individuals with income above $75,000, head-of-household filers with income above $112,500 and $150,000 for married couples filing jointly.
The bill would also make the credit fully refundable, in an effort to ensure that the lowest-income households receive the full amount of the credit. It would make 17-year-olds eligible for the credit.
The IRS is directed to make periodic advance payments of the credit, so that households could receive the credit in installments throughout the year instead of having to wait to file their taxes to receive all the money
