In 2021, the government offered billions of dollars in stimulus payments through the American Rescue Plan, which authorized an extension of the Child Tax Credit to assist families impacted by the Covid-19 outbreak.
Monthly payments permitted taxpayers to collect between $250 and $300 per qualified child during the second half of 2021, with the remaining claimed during the current tax filing season. According to research, 17% of families receiving the assistance have fallen below the poverty level when the monthly payments ceased in December 2021.
Families that have not yet received payments or have opted out for a number of reasons will be eligible to claim the full $3,000 credit for any children under the age of six. This amount is increased to $3,600 for children aged 6 to 17, bringing the total to $3,600 on your federal income tax returns.
For some, the stimulus boost resulted in greater tax refunds, while for others, the amount received decreased, depending on adjusted income and other factors. The average refund amount recorded by taxpayers this time last season was $3,535 for those who filed in the early months of the season, which is significantly higher than the average refund amount reported by taxpayers this time the previous season.
As of yet, the stimulus credit has not been expanded a second time, although legislators in numerous states are considering it in light of the economic benefits.