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Previous story Here's what you need to know about the new stimulus child tax credit Next story

STORY BY TAMI LUHBY, CNN

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Published on March 16, 2021 11:38 PM

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Here's what you need to know about the new stimulus child tax credit
(CNN)The $1.9 trillion relief package signed by President Joe Biden greatly enhances the federal child tax credit for one year, allowing millions more families to benefit and lifting millions of children out of poverty.

The stimulus package raises the size of the credit, makes it fully refundable so more households can qualify and calls for it to be sent out in periodic payments rather than rolled into regular tax-time refunds -- a dramatic shift designed to help families pay their bills.

Already, some Democrats are pushing to make the more generous credit permanent, pointing to how much it would help poor children.

That would prove costly, however. The one-year enhancement is projected to cost $110 billion, according to the Committee for a Responsible Federal Budget. Making that permanent is estimated to cost north of $1 trillion over a decade.

Here's how the Democratic-backed relief package changes the child tax credit this year: How much will you get?

The boost to the child tax credit will give eligible parents a total of $3,600 for each child under 6 and $3,000 for each child under age 18 for 2021.