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Starting in tax year 2021, the Plan increases the Child Tax Credit from $2,000 to:
It also makes the credit fully refundable, meaning you’ll be eligible to get it even if you don’t owe taxes.
Starting in July 2021, payments for the Credit will be sent in advance so you won’t have to wait to file your 2021 taxes to receive that amount. You don’t have to do anything to get these payments. The IRS will likely determine eligibility based on your most recent tax filing.
The law passed yesterday applies to the child tax credit for the year we are in, not last year for which your return was filed. You may see monthly payments starting in July.
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