Article Date:
April 2021

Word Count:



ARPA Adds Cash to the Child Tax Credit (2021 Only)

For the 2021 tax year only, the new American Rescue Plan Act (ARPA) makes big, taxpayer-friendly changes to the federal income tax child tax credit (CTC).


Here’s what you need to know, starting with some necessary background information.


CTC Basics


For 2018-2020 and 2022-2025, the maximum annual CTC is $2,000 per qualifying child.


A qualifying child is an under-age-17 child who could be claimed as your dependent for the year. Basically, that means the child lived with you for more than half the year; did not provide more than half of his or her own support; and is a U.S. citizen, U.S. national, or U.S. resident.1


The maximum $2,000 CTC is phased out (reduced) if your modified adjusted gross income (MAGI) for the year exceeds $200,000, or $400,000 for a married joint-filing couple. The credit is phased out by $50 per $1,000 (or fraction of $1,000) of MAGI in excess ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee