How Will the New, Improved Child Tax Credit Work?

The child tax credit (CTC) has always been one of the most popular tax credits around, but President Biden's $1.9 trillion American Rescue Plan just made the benefits even sweeter. It includes new provisions for the 2021 CTC, which allows families to receive $3,000 per qualifying child ages 6 to 17, and $3,600 per child under six.

Unlike the historic CTC, this credit will also be fully refundable. That means you can enjoy the benefits of the credit even if you don't owe any income taxes. You'll get a cash refund for the amount in which your total tax credits exceed the amount of taxes owed.

If you have kids, you're probably trying to wrap your head around all of this and determine if you're eligible for the extra money. Here's some good information to keep in mind as you manage your financial plan for the year.

Source Fool.com