Similar to the EITC, the child tax credit is designed to benefit working families by typically allowing them to claim up to $2,000 per qualifying child via a refundable credit. But the new stimulus bill increases the amount families can claim to $3,600 per child under age 6 and $3,000 for children over age 6. Money from the credit will be split: Half will be paid through the tax refund and the other half will be paid monthly from July to December.
You can use this IRS tool to determine if your child or dependent will qualify for the credit. As with the EITC, claiming this credit may trigger a request for additional information, which could delay your refund.
Income tax brackets
For the tax year 2020, the standard deduction is $12,400 for single filers (an increase of $200) and $24,800 for married couples filing jointly (an increase of $400). For heads of households, the standard deduction is $18,650 (an increase of $300). These increases are inflation adjustments.