The funds, which are part of the American Rescue Plan, will give up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 to 17. The maximum Child Tax Credit (CTC) is up to $3,600 for children under the age of 6 and up to $3,000 per child for children between ages 6 and 17 for those who are eligible. When the monthly payments end, the rest of the credit can be claimed on your 2021 tax return.
“With today’s announcement, about 90% of families with children will get this new tax relief automatically, starting in July,” President Joe Biden said in a statement. “While the American Rescue Plan provides for this vital tax relief to hard working families for this year, Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come.”
“For working families with children, this tax cut sends a clear message: help is here,” Biden said.