Temporary Changes To The Child Tax Credit In 2021

The AgChoice Farm Credit accounting team shares an important update for taxpayers with children. The American Rescue Plan Act of 2021 makes several temporary changes to the Child Tax Credit that will affect many taxpayers with children who will be 17 years old or younger at the end of 2021. The act increases the credit to $3,600 for children under the age of six and $3,000 for children ages six to 17. Unless they opt out, taxpayers will receive up to half of this credit in advance.

The IRS will send eligible taxpayers half of this credit money throughout the remainder of 2021 (with the other h...