Child Tax Credit 2021: is there a maximum number of children who can receive payments?
Around 88% of American children will be covered by the new monthly payments according to the IRS, but some recipients will face restrictions on their entitlement.
The new Child Tax Credit programme is a notable departure from what went before, offering regular direct payments to help working American families with the cost of raising children.
There are certain limits placed on recipients, based on their household income, but recipients with larger families will be delighted to learn that there is no limit on the number of children that you can receive Child Tax Credit payments for.
The American Rescue Plan provided federal funding for one year of the new direct payments but plans are already underway to extend the programme through 2025.
Child Tax Credit is limited for high-income households
While there are no restrictions on the number of children that you are able to claim a Child Tax Credit payment for, there are some limits on how much you can receive if you are considered a high-income household.
As was the case with previous rounds of stimulus checks individuals with an adjusted gross income (AGI) of more than $75,000, or married couples with an AGI of more than $150,000, will not receive the full amount. The entitlement gradually decreases above those thresholds to ensure that the support is more targeted toward working families.
To see how much you will be entitled to, check out this handy Child Tax Credit online calculator.
What has been said about extending the Child Tax Credit?
On Monday President Joe Biden released a statement confirming that the direct payments will begin on 15 July, hitting the target set in the American Rescue Plan, and he was optimistic about the positive impact that the programme will have.
He said that his administration would focus on “delivering critical tax relief to middle class and hard-pressed working families with children. With today’s announcement, about 90% of families with children will get this new tax relief automatically.”
He also made clear that he wants Congress to pass the American Families Plan, the next instalment of his Build Back Better agenda. The legislation would extend the monthly direct payments for another four years, but some within his Party argue that this is not enough.
Shortly after Biden’s statement, Speaker of the House Nancy Pelosi called for the new provision to be made permanent in a statement of her own.
She wrote: “We must make this lifeline permanent, which is why Congressional Democrats will continue to champion an expanded Child Tax Credit – because we can only Build Back Better by putting families first.”
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