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.
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.