Child Tax Credit Changes for 2021

The American Rescue Plan Act made changes to the Child Tax Credit for 2021 that will significantly affect many taxpayers when they file their 2021 tax returns. As a result of this legislation, many taxpayers with minor children can anticipate receiving monthly payments representing 1/12 of the anticipated credit on the 2021 tax return starting in July 2021. Any advance credit received by the taxpayer will ultimately be reconciled on their 2021 tax return. Set forth below are answers to some of the common questions that tax professionals and taxpayers have about the 2021 Child Tax Credit.


What is the age requirement for the Child Tax Credit?

The maximum age requirement has been raised for 2021 to be a child under age 18. This will, for the first time, make a 17-year-old an eligible dependent for the Child Tax Credit, including any advance payments of the credit.

What are the dollar amounts of the Child Tax Credit in 2021?

The credit has been increased to $3,600 for children under age 6 and $3,000 for children aged 6 to 17.

What are the eligibility requirements for claiming the 2021 Child Tax Credit?

The child must be a U.S. citizen or resident with a valid social security number. 

Child Tax Credit Taxpayer Assistance 


Additional Information:

IRS: 2021 Child Tax Credit and Advance Child Tax Credit Payments - Topic A General Information

IRS: 2021 Child Tax Credit and Advance Child Tax Credit Payments - Topic B - Eligibility

Calculation of the 2021 Child Tax Credit

IRS: 2021 Child Tax Credit and Advance Child Tax Credit Payments - Topic D - Calculation of Advance Child Tax Credit Payments

IRS: Overview of Tax Provisions in American Rescue Plan

About the Podcast

Show artwork for MKG Tax Consultants News, View Points, Taxes & Finances
MKG Tax Consultants News, View Points, Taxes & Finances
Tax-Smart Money Management

About your host

Profile picture for Marshawn Govan

Marshawn Govan

MKG Enterprises Corp Third-Party Originator NLMS 1370394 is a diversified digital finance company focusing on serving low-income and moderate income communities while promoting equal and fair access to homeownership to first-time home buyers and existing homeowners FHA, Conventional, VA, Jumbo loans, Non Qualified Mortgage loans, DSCR.

The company provides mortgage loans, down payment assistance, auto, home, life insurance, secured personal loans and tax refund advances. The goal is to help underprivileged and underbanked families access credit to affordably finance auto loans, home improvements, home solar systems, down payments, investment and paying off debts.