The Taxpayer Advocate Service has published an article titled “TAS Tax Tips: Early information about Advanced Child Tax Credit payments under the American Rescue Plan Act,” which discusses important information taxpayers need to know about the new amount of the Child Tax Credit. The article begins as follows:
The American Rescue Plan Act of 2021 recently increased the amount of the Child Tax Credit for most taxpayers from $2,000 to $3,000 for the 2021 taxable year only. In the case of a qualifying child who has not attained the age of 6 as of the close of the calendar year, the credit is increased to $3,600. In addition, the term “qualifying child” is broadened to include a qualifying child who has not attained the age of 18 (in other years, a qualifying child is one who has not attained the age of 17 by the end of the calendar year). Also, for the 2021 taxable year only, the child tax credit is made fully refundable for taxpayers with a principal place of abode in the United States for more than one half of the taxable year or taxpayers who are bona fide residents of Puerto Rico.
To view the full article, click here: “TAS Tax Tips: Early information about Advanced Child Tax Credit payments under the American Rescue Plan Act.”
Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.
Wealth Strategies Journal 