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Child Tax Credit could offer families up to $3,600 per child in 2021: Here's how the headlines could affect your money

Stimulus could raise Child Tax Credit to $3,000 per child 6 to 17 and $3,600 for children under 6.

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Markets rallied Monday. There's more information about what is and isn't in the House's relief bill, including the Child Tax Credit, which could give families up to $3,600 per child. Here's how the headlines could affect your money.

Markets jumped

Markets started March on a high with all three indexes up by the end of trading Monday. The Dow jumped 2%, the Nasdaq rose 3%, and the S&P 500 gained 2.4% for its biggest one-day gain since June.

Markets remained fairly flat Tuesday morning.

Evictions ban expiring soon

Among the provisions left out of the $1.9 trillion relief package the House passed Saturday was a national ban on evictions, which is set to expire this month. Democrats chose to pass the relief bill through a process called budget reconciliation, which limits what they could include.

The bill does include $20 billion in rental assistance and direct payments of up to $1,400, but advocates of the eviction ban say this money will take time to reach people. They're calling on the president to extend the ban through executive order instead.

VIDEO2:4702:47
Tax credits vs deductions: Here's the difference

Video by Stephen Parkhurst

Child Tax Credit could go up

Among the provisions included in the Covid relief package is a change in the Child Tax Credit, raising the amount to $3,000 per child ages 6 to 17 and $3,600 for children under 6 for 2021. The current credit provides $2,000 per child. The credit would start phasing out for individuals earning more than $75,000 and married couples filing jointly making more than $150,000.

While the credit is typically paid out in one lump sum, the bill enables taxpayers to receive it in monthly installments of $250 and $300, respectively. 

Words you've heard: wealth tax 

A wealth tax is a tax levied on a person's total assets including cash, pension plan, and property. Senator Elizabeth Warren was among the policymakers proposing the Ultra-Millionaire Tax Act on Monday, a 2% annual tax on wealth over $50 million and 3% for wealth over $1 billion. 

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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