When the American Rescue Plan was signed into law in mid-March, it did a lot more than just send stimulus checks to people's bank accounts. It also boosted an essential tax credit, setting the stage for millions of families to get a financial boost.
The Child Tax Credit used to be worth a maximum of $2,000, and only $1,400 of it was refundable. That meant if a family claimed the $2,000 credit for a single child and owed no money to the IRS, the most that family could get back in refund form was $1,400.
For the current tax year, though, the Child Tax Credit is fully refundable, and it's also worth a lot more money.
Maurie Backman | USA Today