This extends the Enhanced Child Tax Credit by one year. This is a credit for $3,000 per child aged 6 to 17 and $3,600 per child under 6. This credit is fully refundable, which means taxpayers doesn’t need to pay income taxes to get the credit. The credit for 2021 is for eligible families with Adjusted Gross Income under $150,000 (Married Filing Joint), $112,500 (Head of Household) or $75,000 (Single). This provision provides about $190 billion of benefits to families.
The BBB puts some limits on IRAs. Notably, no contributions can be made to a Roth or traditional IRA if it would cause the total value of the IRA and Defined Contribution accounts to exceed $10 million. The limit would only apply to taxpayers with income over $450,000 (married), $425,000 (head of household) or $400,000 (single).
