How this calculator works
Historical tax year: 2021, United States. This narrowly defined comparison holds 2021 ordinary-income tax bands and the supplied deduction fixed, then compares child-credit rules before and after the American Rescue Plan. It is not a simulation of every Biden campaign or budget proposal. The ARP side assumes the US residence and qualifying-child conditions for full refundability are met. Pre-expansion ACTC uses the basic earnings method and $1,400 per-child cap. Negative net tax means a refundable credit exceeds the calculated income tax. Other tax credits and payroll taxes are excluded.
Formula
Expanded CTC = $3600 per child under 6 + $3000 per child 6 to 17, reduced by the two statutory phaseouts. Net federal tax = ordinary tax - usable non-refundable credits - refundable credits. Saving = pre-expansion net tax - ARP net tax.
Worked example
At $60,000 single AGI and a $12,550 deduction, 2021 ordinary tax is $6,187.50. One child aged 4 and one aged 9 give $4,000 under pre-expansion rules and $6,600 under the ARP. Net tax falls from $2,187.50 to -$412.50, a $2,600 change.
Frequently asked questions
Which Biden plan is being compared?
Only the enacted 2021 American Rescue Plan expansion of the child tax credit, compared with the pre-expansion child-credit rules using unchanged 2021 brackets.
Does a negative result mean tax is negative?
It means the modelled refundable credit exceeds income tax before credits. It is not a prediction of your refund after withholding.
Are these current credit amounts?
No. The page is labelled 2021. Use the separate child tax credit calculator for its stated tax year.