Here’s a basic chart itemizing the 2021 American Rescue Plan’s new rules, differentiating between the US and non-US residents.
We encourage you all to read the instructions to forms 8812 and 2441 at some point, but for now, enjoy this cheat-sheet:
| 2021 CHILD TAX CREDIT | US Residents** | US non-residents |
| The CTC now applies to qualifying children who are under 18 by the end of 2021. (Previously, 17-year-olds were ineligible) |
TRUE | TRUE |
| CTC amount is increased to $3,600 for kids under 6 and $3,000 for kids under 18. | TRUE | TRUE |
| The CTC is now fully refundable! | TRUE | FALSE (refundable portion remains $1,400) |
| You get CTC even without any Earned-Income |
TRUE | FALSE (no look-back either) |
| If you received advanced CTC, and it was more than you were eligible for, you need to pay it back with your tax filing | TRUE | TRUE |
| 2021 CHILDCARE EXPENSE CREDIT | US Residents** | US non-residents |
| Max qualifying expenses for the 2441 credit increased to $8,000 (previously $3,000) if you had 1 qualifying child, or $16,000 (previously $6,000) if you had 2+ | TRUE | TRUE |
| Maximum credit allowed increased to 50% of qualifying expenses and only starts to phase-out at $125,000 (previously $15K) | TRUE | TRUE |
| The 2441 credit is now fully refundable! | TRUE | FALSE (its entirely non-refundable) |
| You are lucky to be living in Israel! | FALSE | TRUE |
| The IRS isn’t fair | TRUE | TRUE |
**”This means you, or your spouse if married filing jointly, must have your main home in one of the 50 states or the District of Columbia for more than half of 2021.
Your main home can be any location where you regularly live.
Your main home may be your house, apartment, mobile home, shelter, temporary lodging, or other location and doesn’t need to be the same physical location throughout the tax year.
If you’re temporarily away from your main home because of illness, education, business, or
vacation, you’re generally treated as living in your main home during that time.”
—
As of now, these changes have expired with 2021, and have not been extended to 2022. That of course can change with Omicron on the rise.