The president of the United States, Joe Biden, signed on Thursday the economic rescue plan known as the ‘American Rescue Plan’, which, among other things, contains economic stimulus checks, but which will also include an increase in the tax credit for each child.
The bill effectively doubles the size of the existing CTC, providing an additional $ 125 billion. Low-income families will be eligible for the full credit, while part of the credit can be received as a cash payment, providing instant help to many people should they need it.
Experts believe this CTC expansion will dramatically reduce child poverty by increasing disposable income of the lowest income families by 37.4%.
Requirements to be eligible
According to the law signed by Biden, to be a beneficiary of the child tax credit, it is necessary that your annual earnings are less than $ 75 thousand dollars or $ 150 thousand for married couples.
Among the changes that were made separately in the tax credit, is that it is now fully refundable when eliminating a rule limiting the refundable portion to $ 1,400 and eliminating the earnings requirement.
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