The expanded Child Tax Credit ended after 2021

The American Rescue Plan, passed in March 2021, temporarily expanded the Child Tax Credit for one year. Under this expansion, families received up to $3,600 per child under age 6 and up to $3,000 per child ages 6 to 17, with monthly payments sent directly to households from July through December 2021. This was a significant increase from the standard $2,000 credit that had been in place since 2017.

That expanded version expired on December 31, 2021. Congress did not pass legislation to extend it beyond that date. Starting in 2022, the Child Tax Credit returned to the $2,000 per child amount, and the monthly payment structure ended. Families could still claim the credit on their tax returns, but only as a lump sum when filing, not as advance monthly payments.

Several proposals to extend or restore the expanded credit have been introduced in Congress since 2022, but none have become law. The credit remains at $2,000 per child for tax years 2022 through 2025, unless new legislation changes it.

Key Takeaways

  • The expanded Child Tax Credit of up to $3,600 per child was a one-year program that ended December 31, 2021.
  • The monthly advance payments that ran from July to December 2021 do not continue; that payment structure was temporary.
  • The standard Child Tax Credit of $2,000 per child returned in 2022 and remains in effect for the current tax year.
  • You can still claim the $2,000 credit on your tax return, but you receive it as a single amount when you file, not monthly.

How the expanded credit worked in 2021

During 2021, the expanded credit was larger and paid differently than the standard version. The American Rescue Plan increased the maximum amount to $3,600 for children under 6 and $3,000 for children ages 6 to 17. The IRS also changed how families received the money: instead of waiting until tax time, the agency sent half the credit as monthly payments from July through December 2021, and families claimed the other half when they filed their 2021 tax return.

The monthly payments were automatic for most families who had filed a 2020 tax return. Families could also use the IRS's Child Tax Credit Update Portal to register if they had not filed, to report a new child, or to update their income or address. The portal closed in November 2021, so no new registrations were accepted after that date.

The standard Child Tax Credit since 2022

After the expansion ended, the credit returned to the amount set by the Tax Cuts and Jobs Act of 2017: $2,000 per child under age 17. This credit is not paid monthly. Instead, you claim it on your federal tax return for the year the child was born or lived with you, and you receive the full amount as part of your refund or as a reduction in the taxes you owe.

The $2,000 credit is available to married couples filing jointly with a modified adjusted gross income (MAGI) up to $400,000, and to single filers with a MAGI up to $200,000. The credit begins to phase out—meaning the amount you can claim decreases—for each $1,000 (or fraction of $1,000) of income above those thresholds.

You must have a valid Social Security number for each child to claim the credit. The child must also be your son, daughter, stepchild, foster child, sibling, or descendant of any of these relatives, and must have lived with you for more than half the year.

Proposals to restore the expanded credit

Since the expansion ended, lawmakers from both parties have introduced bills to bring back the larger credit or the monthly payment structure. The Child Tax Credit for Working Families Act and the Expand the Child Tax Credit Act are two examples of proposals that would restore the $3,600 and $3,000 amounts and reinstate monthly payments. However, none of these proposals have passed both chambers of Congress and been signed into law.

The status of these proposals changes with each new Congress. Some bills are reintroduced in new sessions, while others are not. Checking the status of a specific bill requires visiting Congress.gov and searching by bill number or title to see whether it has advanced out of committee or received a vote.

How to claim the current Child Tax Credit on your return

To claim the $2,000 Child Tax Credit for the current tax year, you report it on your federal tax return using Form 1040 and Schedule 8812 (or Form 1040-SR if you are age 65 or older). You will need the child's full name, date of birth, and Social Security number. The IRS matches this information against Social Security Administration records, so the name and number must be exact.

If you use tax preparation software or file through a tax professional, the software or professional will ask you questions about your children and calculate the credit for you. If you file by hand, you complete Schedule 8812 to figure the credit amount based on your income and the number of may have access to children, then transfer the result to Form 1040.

The important date to claim the credit for a given tax year is normally April 15 of the following year, though you can file late if you have a valid reason. If you are owed a refund, filing late does not change your right to claim the credit, but it does delay your refund.

Income limits and phase-out rules

The Child Tax Credit is not available to all families. Your income must fall below the phase-out threshold to claim the full $2,000 per child. For married couples filing jointly, the threshold is $400,000 of modified adjusted gross income (MAGI). For single filers, head of household filers, and may have access to widows or widowers, the threshold is $200,000.

If your MAGI exceeds the threshold, the credit reduces by $50 for each $1,000 (or any part of $1,000) over the limit. For example, if you are married filing jointly with a MAGI of $401,000, your credit is reduced by $50. If your MAGI is $401,500, your credit is reduced by $100. This reduction applies to each may have access to child, so a family with two children would lose $100 and $200 respectively in the same scenarios.

MAGI is usually your adjusted gross income (AGI) from your tax return, but certain types of income are added back for this calculation. The IRS instructions for Form 1040 and Schedule 8812 specify which income types are included in MAGI for the Child Tax Credit.

Frequently Asked Questions

Will the expanded Child Tax Credit come back?

There is no current law that would restore the expanded credit. Proposals exist in Congress, but they have not passed. You can check Congress.gov to see the status of any bill by searching its number or title. Tax law can change, so it is worth monitoring news from Congress if this credit matters to your household.

Can I still get the monthly payments from 2021?

No. The monthly payment program ended on December 31, 2021, and the IRS is not reopening it. If you did not receive all the payments you were owed in 2021, you could claim the missing amount on your 2021 tax return. That important date has passed, but you may still be able to file an amended return if you did not receive your full credit.

What if I have a new child born after 2021?

You can claim the $2,000 Child Tax Credit for a child born in 2022 or later on your tax return for the year the child was born. The child must have a valid Social Security number. You cannot receive monthly payments for new children; the monthly payment structure is no longer available.

Do I have to file a tax return to get the Child Tax Credit?

You must file a federal tax return to claim the credit, even if your income is below the filing threshold. If you have no tax liability and no other reason to file, you will not owe taxes, but you still need to file to receive the credit as a refund.

Is the $2,000 credit the same for all children?

The credit is $2,000 per child under age 17 at the end of the tax year. Children age 17 and older do not may have access to. Adopted children, stepchildren, and foster children count if they meet the relationship and residency requirements. Each may have access to child generates a separate $2,000 credit.