The ongoing COVID-19 pandemic has affected countless Americans from all walks of life, leaving many jobless while struggling to feed their families and secure livelihood.

Recently signed by President Joseph Biden, the American Rescue Plan includes some important changes to the Child Tax Credit. These changes will help rebuild the American economy and aid millions, says the University of Alabama at Birmingham’s Peter Jones, Ph.D., an assistant professor in the College of Arts and Sciences Department of Political Science and Public Administration.

The child tax credit applies to those with children or other dependents and is a way to reduce a tax liability — the amount owed to the federal government. For this year’s federal taxes, Jones says the American Rescue Plan has made two important changes to the CTC.

“First, the credit increases from $2,000 per child to $3,000 for children ages 6-17 and $3,600 for children younger than 6,” Jones said. “Second, the CTC is fully refundable, so people who did not earn enough income to have a tax liability high enough to reduce through credits still receive the benefit.”