Child tax Credit is a part of the American Rescue Plan under which the government provide some assistance for eligible children who are under the eligibility age. During the COVID-19 Pandemic, many working families have lost their income source and are also unable to fight this crisis with low income. The US Federal Government then took a stand and released around a $1.9 Trillion budget to assist all working families in covering their losses and recovering the country’s economy.
Child Tax Credit is also given to all working families who are valid taxpayers and paid their all taxes. The American Rescue Plan has expanded the CTC Payment for the families according to their have child with the eligibility age. If you want to know about increasing the Child Tax Credit to $3000 From $2000 with $600 Bonus Update then read the following sections and know the complete updates.
Child Tax Credit Under America Rescue Plan
The Child Tax Credit is for all working families with low income to reduce Child Poverty. It is a supplementary assistance to all the families receiving the tax credit from the government which is available for a significant number of families. Now CTC is increased under the American Rescue Plan and eligible families will receive this tax credit with some increased amount which will allow them to care for their child better to build their future.
There are multiple eligibility criteria to receive this Child Tax Credit under the American Rescue Plan. If you have filed 2019 or 2020 Income Tax and Return Benefits then you are eligible to receive this Child Tax Credit from the government. IRS is the authority that manages the transfer and assists eligible families.
American Rescue Plan CTC Increased with Bonus – Overview
| Country | USA |
| Article On | American Rescue Plan: Increase in Child Tax Credit up to $3000 with USD 600 bonus |
| Department | Internal Revenue Service |
| Government | US Federal Government |
| Program | American Rescue Plan |
| Average Increase in CTC | $2000 to $3000 |
| CTC Bonus Amount | USD 600 |
| Category | Government Aid |
| Beneficiary | Low-Income Working Families |
| Increase CTC Payments Date | To be Updated Soon |
Child Tax Credit Increased to $3000
It is good news for all low-income working families that they will receive some additional amount from the Child Tax Credit. IRS will provide this assistance to eligible families and only the taxpayer will receive this amount for children up to the age of 17 years. The CTC Amount has Increased from $2000 to $3000 in 2024 and some additional bonus of $600 will also be available and it is beneficial for all the families to maintain their family needs better.
If you are looking to know If I am Eligible for this CTC with a Bonus of USD 600 then need to visit this complete article till the end and know the updates available here. The CTC Benefits will be according to Child Age and I have mentioned that in the following sections.
What is the American Rescue Plan?
It is a financial assistance program run by the IRS at the time of the COVID-19 Pandemic. The motive of this program is to provide possible assistance for low-income families who were impacted by this crisis and lost their all to manage the cost of living. The US Federal Government then introduced a plan named the American Rescue Plan and around 1.9 Trillion was released to provide help to eligible families. Millions of Working Families in America benefited from this program and now they can maintain their ends meet.
Through this plan, the government provide direct relief payments to eligible Americans rescuing them from this crisis. This is also a bridge for the recovery US economy which helps in reducing Child Poverty by giving Child Tax Credits to eligible families. This is some additional payment made for the families to manage their cost of living expenses. The government has made a mixed effort to give assistance to eligible families and also give some additional payment through the Child Tax Credit to maintain the children’s future to give them better health and education.
What is the CTC for Low-Income Working Families?
Child Tax Credit is an assistance for low-income working families under the American Rescue Plan. Under this plan, eligible families will receive Child Tax Credit Payment for their eligible children which is the most historical relief to the families. Every year, CTC is revised according to inflation and provides the payment to manage the cost of living. If you are eligible for CTC then can receive the awesome amount from the government. Recently according to the latest updates, CTC has been increased from $2000 to $3000 with a USD 600 Bonus.
There is also an income threshold for working families and those who have in the criteria will receive this amount from the government. The CTC is not the same for all families but it depends on the Child’s Age the family’s annual income and the requirements. If you want CTC then need to file the income tax return and also define the annual gross income which is $12,500 for Single Parents and around $15,500 for the Couple or Head of household. You should check the Eligibility for Child Tax Credit and then verify the Children’s age to receive the amount from the IRS.
How Much Does the Child Tax Credit Increase in 2024?
The Child Tax Credit is an option for low-income working families to receive some additional assistance. However, they are receiving other benefits from multiple programs. if you have an eligible child then can receive this CTC Increase Amount of $3000 with a $600 Bonus. If you are a taxpayer and paid all taxes can apply for this benefit and receive some good amount on your eligible child.
The American Rescue Plan has increased the Child Tax Credit Amount for 2024 and now eligible low-income working families will be able to get this increased CTC from the government. As per the latest, if you have children over the age of Six then can receive CTC around $3000 per child. Children under the age of Six can get CTC of USD 2000 to USD 3000 with a USD 600 bonus. Here the government has raised the children age from 16 to 17 to receive this CTC Benefits. The Working Families’ annual gross income is also important and plays a significant role in making this amount for their children. So you have to check the complete aspect before receiving this amount.
Do I have to Apply to Get an Increase in CTC?
Many families are confused about whether we need to apply to get the increase in CTC. So here is the solution to your doubt. According to the IRS, if you filed a tax return for 2019 or 2020 and also received a stimulus check from the IRS, your eligibility for the Child Tax Credit will automatically be considered.
You will get some tax relief from the government and do not need to apply for an increase in CTC. Child tax credit amounts will be available in July each year. Tax relief will be given as per your income tax filed and return benefit. For more information, you can visit the official website or stay connected with me.
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