The child tax credit is a fully refundable tax credit for families with eligible children. The credit is fully refundable: low-income families qualify for the maximum credit regardless of how much they earn. The CTC was increased and made refundable in 2001 to coordinate with the earned income tax credit (EITC). You can add or change your bank account information through the IRS child tax credit update portal.
The American Rescue Child Tax Credit Plan provides the largest child tax credit in history and historic relief to most working families in history. The credit will also be available periodically throughout the year starting in July, instead of being a lump sum at the time of pay taxes. In addition, the American Rescue Plan extended the full child tax credit permanently to Puerto Rico and the United States. If you decide not to receive any more monthly payments, you will receive the remaining child tax credit as a lump sum next year when you file your tax return.
To unsubscribe from monthly payments or unsubscribe, you can visit the IRS child tax credit update portal. The American Rescue Plan increased the child tax credit and expanded its coverage to better help families who care for children. The expansion of the American Rescue Plan child tax credit will reduce child poverty by (supplementing) the income of families receiving the tax credit and () making the credit available to a significant number of new families.