The Child Tax Credit expanded temporarily, then returned to its previous level
The Senate did not pass a permanent expansion of the Child Tax Credit. What actually happened: Congress passed a temporary expansion as part of the American Rescue Plan in March 2021, which increased the credit and made it payable monthly instead of only at tax time. That expansion ran through December 2021. Starting in 2022, the credit went back to the rules that existed before the pandemic.
The credit is now $2,000 per child under age 17 for most filers, the same amount it was from 2018 through 2020. You claim it on your tax return when you file. The monthly payments that arrived in 2021 are no longer available.
Key Takeaways
- The Child Tax Credit expanded temporarily in 2021 but returned to $2,000 per child starting in 2022.
- The monthly payments that ran from July through December 2021 ended and are not coming back under current law.
- You still claim the $2,000 credit on your tax return each year, but it is only paid when you file, not throughout the year.
- Congress would need to pass new legislation to bring back the expanded credit or the monthly payments.
What the 2021 expansion actually did
The American Rescue Plan, passed in March 2021, made three changes to the Child Tax Credit for that year only. First, it raised the credit from $2,000 to $3,000 per child ages 6 to 17, and to $3,600 per child under age 6. Second, it made the credit "refundable," meaning you could receive the full amount even if you owed no income tax. Third, it split the payment into two parts: half came as monthly payments from July through December 2021, and half came when you filed your 2021 tax return in 2022.
The monthly payments were automatic for most families. The IRS used tax return information from 2020 or 2019 to identify may be able to access households and sent payments without requiring a new process. Families could opt out or update their information through an IRS portal if their circumstances had changed.
Why the expansion ended after 2021
The American Rescue Plan set an expiration date: the expanded credit and monthly payments were only for 2021. Congress did not pass legislation to extend them beyond that year. Starting January 1, 2022, the credit reverted to the $2,000 amount that had been in place since 2017.
Several proposals to extend or make permanent the expanded credit have been introduced in Congress since then, but none have passed both chambers. The credit remains at $2,000 per child for 2022, 2023, 2024, and beyond under current law.
How to claim the credit now
You claim the Child Tax Credit on your tax return using Form 1040 and Schedule 8812. You must have a valid Social Security number for each child you claim. The child must be under age 17 at the end of the tax year, live with you for more than half the year, and be your son, daughter, stepchild, foster child, sibling, or descendant of any of those.
The credit reduces your tax bill dollar-for-dollar. If the credit is larger than the tax you owe, you may receive the difference as a refund, up to a limit. That limit is $1,700 per child for 2023 and 2024 (the amount changes slightly each year for inflation).
Income limits and phase-out rules
The credit begins to shrink if your income exceeds a certain threshold. For 2024, the phase-out starts at $400,000 for married couples filing jointly and $200,000 for single filers. For each $1,000 of income above the threshold, the credit reduces by $50.
Your income for this purpose is your modified adjusted gross income, which is usually the same as your adjusted gross income shown on your tax return. If you are unsure whether you are over the limit, calculate your adjusted gross income first, then compare it to the threshold for your filing status.
What changed between 2021 and now
| Feature | 2021 (Expanded) | 2022 and Later |
|---|---|---|
| Credit per child under 6 | $3,600 | $2,000 |
| Credit per child ages 6–17 | $3,000 | $2,000 |
| Monthly payments | Yes, July–December | No |
| When you receive the credit | Half monthly, half at tax time | Only when you file your return |
| Refundable amount per child | Up to $3,600 or $3,000 | Up to $1,700 (2024) |
Frequently Asked Questions
Can I still get the monthly payments from 2021?
No. Those payments ended in December 2021 and are not available now. If you did not receive all the payments you were owed in 2021, you may have claimed the missing amount on your 2021 tax return when you filed in 2022. That opportunity has passed.
Will Congress bring back the expanded credit?
That depends on future legislation. Several proposals have been introduced, but none have passed both the House and Senate. You should not count on the expanded credit or monthly payments returning unless Congress passes and the President signs a new law.
What if my income changed since 2021?
Your 2024 credit is based on your 2024 income, not your 2021 income. If you earned less in 2024, you may receive a larger credit. If you earned more, the credit may be smaller or phase out entirely. Report your actual 2024 income on your 2024 tax return.
Do I have to do anything special to claim the credit?
You claim it on your tax return by filling out Schedule 8812 and attaching it to Form 1040. You do not need to register or explore separately. Make sure you have a valid Social Security number for each child and that the child meets the age and relationship requirements.
What if I owe back taxes or child support?
The IRS can reduce or eliminate your Child Tax Credit to pay back taxes, unpaid child support, or other federal debts. If you have outstanding obligations, contact the IRS or the agency involved to discuss your options before filing.