Child tax credit update 2021 ctc will end in a few weeks but theres still time to receive the 1800 payment
The 2021 Child Tax Credit (CTC) was significantly expanded under the American Rescue Plan, increasing the credit amount to $3,600 for children under age 6 and $3,000 for children ages 6 to 17. Half of this credit was distributed in monthly payments from July to December 2021, with families receiving up to $300 per month for younger children and up to $250 for older children. The remaining half could be claimed when filing the 2021 tax return.
Key Points for 2021 CTC:
- Eligibility and Amounts:
- Up to $3,600 for children under age 6.
- Up to $3,000 for children ages 6 to 17.
- Fully refundable, allowing low-income families to receive the full credit
- Monthly Payments:
- Started on July 15, 2021, and continued through December 2021.
- Families could opt out of advance payments if they preferred to claim the full credit on their tax return.
- Phaseout Thresholds:
- The credit began to phase out at $150,000 for joint filers, $112,500 for heads of household, and $75,000 for single filers.
- Further reduction below $2,000 occurred at $400,000 for joint filers and $200,000 for other filers.
- Claiming the Credit:
- Families who did not receive advance payments could claim the full credit on their 2021 tax return.
The enhanced CTC for 2021 was a temporary measure, and the credit reverted to its pre-2021 levels for subsequent years unless extended by legislation.
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