That structure remains in place.
But the American Rescue Plan offers a larger benefit to low and moderate earners, according to the Congressional Research Service. Higher-income families will generally get the same credit as under prior law.
Larger credit
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For one, the law raised the age of qualifying kids to age 17, from 16. (This benefits recipients across the income scale.)
Some families will get a larger maximum credit: $3,000 per kid ages 6 to 17 and $3,600 for younger children.
Single adults qualify for the full value of that larger credit if their annual income is $75,000 or less. (The income threshold is $112,500 for head -of-household filers and $150,000 for married joint filers.)
The IRS will start sending monthly payments from the new $3,000 child tax credit in July to families who have proven eligibility by filing a 2020 tax return.
Families Must File a 2020 Tax Return to Get the New $3,000 Child Tax Credit nbcnewyork.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nbcnewyork.com Daily Mail and Mail on Sunday newspapers.
Families Must File a 2020 Tax Return to Get the New $3,000 Child Tax Credit nbcdfw.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nbcdfw.com Daily Mail and Mail on Sunday newspapers.