2021 – 03/11 Under the newly passed American Rescue Plan Act (ARPA), the Child Tax Credit (CTC) has expanded for 2021 for eligible taxpayers. Before the ARPA, the CTC was $2,000 per “qualifying child.” A qualifying child was defined as a child under age 17, whom the taxpayer could claim as a dependent. For 2021, the ARPA increases the CTC to $3,000 per year for each child age six to 17 and $3,600 for children under age six. To be eligible for the full payment, you must have a modified AGI of under $75,000 for singles, $112,500 for heads-of-households and $150,000 for joint filers and surviving spouses. The credit begins to phase out at higher incomes.

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