Monthly payments of the child tax credit in 2021 were protected from garnishment. But the federal government can seize borrowers’ refund this tax season.
A borrower is generally in default if they fall at least 270 days behind on federal student loan payments.
The American Rescue Plan, which President Joe Biden signed into law in March, boosted the maximum value of the child tax credit to $3,000 per child under age 18, with a $600 bonus for kids under 6 years old.
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