This Child Tax Credit (CTC) will provide more cash assistance to low income families than any other federal program. While the credit itself is not new, there have been some updates that will help families throughout the year.

What’s Changed?

These payments are larger than usual with half of the payment coming in advance. This money is a part of President Biden’s American Rescue Plan- a response to the COVID-19 pandemic.  

This plan increases the CTC from $2,000 per child to $3,600 per child for children under the age of six, from $2,000 to $3,000 for children over the age of six, and has also raised its maximum child age limit from 16 to 17.

A second round of Golden State Stimulus funding is here and is available to an even larger group of people. Two-thirds of Californians qualify for the second round of payment, but to qualify, you must:

• Have filed your 2020 taxes
• Have an income less than $75,000
• Reside in California for more than half of the 2020 tax year
• Be a California resident on the date payment is issued
• Cannot be claimed as a dependent by another taxpayer