Have you heard about the new Child Tax Credit for 2021 introduced in President Biden’s American Rescue Plan? Are you curious about the details of who will benefit and to what extent?

This life-changing new tax credit will increase the amount each American family gets per child from $2,000 to anywhere from $3,000 to $3,600, with those funds coming in the form of monthly payments instead of an end-of-the-year tax return.

This is the largest child tax credit in the country’s history, and it should provide a massive amount of relief to families all over the country. Let’s jump in and take a closer look at some of the details involved.

2021 Child Tax Credit

The new Child Tax Credit will apply to any family with children under the age of 17. Each child under six will qualify for a $3,600 credit, while children between six and 17 will be eligible for $3,000 each.

These credits will fully apply to all families that make less than $150,000, or any single parents that make less than $112,500.

Automatic Monthly Payments

Anyone who has filed a tax return for 2019 or 2020 will be automatically enrolled in the new Child Tax Credit program, and anyone who receives their tax return by direct deposit should see the Child Tax Credit deposits hitting their accounts on the 15th of every month.

Anyone who still receives their tax return checks by mail can also expect to receive their Child Tax Credit this way as well.

Low-Income Families Still Qualify

Low-income families that don’t make enough income to file an income tax return are still eligible for this new Child Tax Credit.

Those families are welcome to enroll themselves in this new program by simply signing up through the “Non-Filer Sign-Up” link on the White House information page.

American Families Plan

It is worth noting that President Biden is pushing to make this new credit permanent through his American Families Plan. If that were to happen, families with children could see these benefits hitting their bank accounts every month for as long as their children remain eligible, which would be a game-changer for the economy in the long run.

If you are interested in learning more about the new Child Tax Credit, the best place to start is the White House information page. Another fantastic information source is the IRS website, which includes an eligibility checker that can tell you exactly what to expect in your specific case.

If you have children of your own, this is likely something you have already been enrolled in and receiving regularly. And even if you don’t have children of your own, you almost certainly have friends, relatives, and customers who will benefit from this massive tax credit.

Regardless of political opinions, everyone wins when the average consumer has more money in their pocket. Make sure that you understand exactly how this incredible new initiative will impact you and your business.