Everything You Need to Know: The Child Tax Credit is a Middle Class Tax Cut

As a part of the American Rescue Plan, the Child Tax Credit was expanded from $2,000 to $3,000-$3,600 for every child. The expanded Child Tax Credit in the American Rescue Plan kicks in on July 15, and will provide direct support to roughly 39 million families.

This is about leveling the playing field for hard working American parents. These investments in working families won't cost them a dime, or add to our national debt. By making mega-corporations and the ultra-rich pay their fair share in taxes, hard working men and women will get the help they deserve to take care of their families.

The Child Tax Credit is a tax cut for most families with children. 

• The American Rescue Plan signed into law by President Biden increased the Child Tax Credit to $3,600 for every child under six, and $3,000 for every child ages six and over. 

○ This will help more than 65 million American children, deliver critical financial support to families -- especially working parents -- who are struggling with expenses like childcare, and help to cut child poverty in half this year. 

○ The Child Tax Credit isn’t only critical for families, it’s critical for our economy at large. Giving parents the extra financial support they need will make child care more affordable and help the more than 2 million women who left their jobs to take care of kids get back into the workforce. 

• For the first time, the payments will be distributed monthly -- meaning up to $300 for each child under six and up to $250 for a child six to 18 in families’ pockets every month.

President Biden is advocating for Congress to make the child tax cut permanent in order to provide critical financial support for most working families.

To learn more about The Child Care Tax Credit and get your questions answered visit: https://www.whitehouse.gov/child-tax-credit/