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The Child Tax Credit was increased for tax year 2021 only. It is $3,600 for each child under the age of 6 and $3,000 for each child age 6 thru 17 in 2021.
Yes. It increased! But they sent out half of it during the year. Did you get the advance payments? Then you might see less on your tax return. The new Child Tax Credit for 2021 raises the cut off age from 17 to 18 and makes the credit $3,000 (3,600 for a child under age 6). Check 1040 line 28 for it.
I found this in a news article, it explains it pretty well........
While the CTC expansion was structured to not increase taxes on any household, a dollar of credit received in advance results in a dollar less received at filing time. For families unaware of the trade-off, it could mean a surprise when they see their refund total this year.
Consider a married couple with a 10-year-old child who normally received their $2,000 CTC when they filed their taxes. They would have received $1,500 of their $3,000 in advance. As such, they could potentially see their refund shrink by $500 even though their total benefit increased to $3,000 because they are left with $1,500 instead of their normal $2,000 at tax time.
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