Child Tax Credit: Frequently Asked Questions (FAQs) About the Child Credit for 2021 as Expanded by the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2) [Updated September 15, 2021] [open pdf - 2MB]
From the Document: "In March of 2021, Congress passed legislation significantly expanding the child tax credit for one year as part of the American Rescue Plan Act of 2021 (ARPA; P.L. 117-2). ARPA expanded the eligibility for and the amount of the credit for 2021, especially for low- and middle-income taxpayers. The law also directed the Treasury Secretary to establish a program to advance up to half of the total credit amount 'before' 2021 income taxes are filed. This is a departure from most other tax benefits, which are typically delivered annually in a lump sum after federal income tax returns are filed. The 117th Congress is considering proposals to extend and/or modify the temporary child credit expansion included in APRA. In April 2021, House Ways and Means Committee Chairman Richard Neal released a discussion draft of the Building an Economy for Families Act that includes a provision to permanently extend the ARPA changes to the child credit. The Biden Administration has proposed making the full refundability provision included in ARPA permanent, while extending other ARPA provisions through the end of 2025. This report provides answers to selected frequently asked questions (FAQs) about the ARPA-expanded child credit for 2021."
CRS Report for Congress, R46900
Congressional Research Service: https://crsreports.congress.gov/