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.