The Child Tax Credit expanded temporarily, then returned to its previous amount

The Senate did pass changes to the Child Tax Credit, but the story is more complicated than a straightforward yes or no. In 2021, Congress passed the American Rescue Plan, which temporarily increased the Child Tax Credit from $2,000 per child to $3,600 for children under age 6 and $3,000 for children ages 6 through 17. This expansion was set to expire at the end of 2021, and it did. Starting in 2022, the credit went back to $2,000 per child, where it remains today.

The temporary expansion also changed how families received the money. For most of 2021, the IRS sent monthly payments directly to families rather than waiting until tax time. After 2021 ended, the credit returned to being claimed only on your tax return, with no monthly advance payments.

Since then, there have been proposals in Congress to extend or restore the expanded credit, but none have passed into law. The current Child Tax Credit is $2,000 per may have access to child under age 17, and you claim it when you file your tax return.

Key Takeaways

  • The Child Tax Credit was temporarily increased to $3,600 (under age 6) or $3,000 (ages 6–17) in 2021 only, then returned to $2,000 per child starting in 2022.
  • During 2021, families received the expanded credit as monthly payments from the IRS; after 2021, the credit is claimed only on your tax return.
  • Congress has proposed restoring the expanded credit multiple times, but no proposal has become law.
  • The current $2,000 credit applies to each may have access to child under age 17 on your 2024 tax return.

What the 2021 expansion actually did

The American Rescue Plan, passed in March 2021, made the Child Tax Credit larger and paid it differently. Instead of waiting until April to claim the credit on your tax return, the IRS began sending monthly checks starting in July 2021. Families with children under 6 received $300 per month per child; families with children ages 6 through 17 received $250 per month per child.

This meant a family with one child under 6 could receive up to $1,800 in advance payments over six months (July through December 2021), then claim the remaining $1,800 when they filed their 2021 tax return in 2022. The expansion also made more lower-income families able to claim the credit by raising the income thresholds.

The expansion was always scheduled to end on December 31, 2021. Congress did not extend it, so it expired as written.

Why the expansion ended

The American Rescue Plan was a temporary economic relief measure passed during the COVID-19 pandemic. Like many provisions in that law, the expanded Child Tax Credit had a built-in expiration date. Congress would have needed to pass a new law to extend it beyond 2021, and that did not happen.

Different members of Congress have different views on whether the credit should be expanded again. Some argue the expansion helped reduce child poverty and should be permanent. Others say the cost is too high or that the money should be spent differently. These disagreements have prevented any new expansion from passing both chambers of Congress and being signed into law.

What you claim on your 2024 tax return

For the 2024 tax year (the return you file in 2025), the Child Tax Credit is $2,000 per may have access to child under age 17. You claim this credit on Form 1040 (your main tax return form) using Schedule 8812 if you need to calculate the refundable portion of the credit.

To claim the credit, your child must have a valid Social Security number, be claimed as your dependent, be under age 17 at the end of the tax year, and meet relationship and residency tests. Your income also affects how much credit you can claim — the credit begins to phase out at $400,000 for married couples filing jointly and $200,000 for single filers.

Unlike the 2021 expansion, there are no monthly payments. You receive the entire credit amount when you file your return and the IRS processes it.

Proposals to restore the expanded credit

Since the expansion ended, lawmakers have introduced bills to bring back the larger credit amounts or make them permanent. The Build Back Better Act, proposed in 2021, would have extended the expansion through 2025. The Child Tax Credit for Working Families Act, introduced in 2023, proposed making a similar expansion permanent. Neither bill passed both chambers of Congress.

These proposals show that the issue remains active in Congress, but proposals and actual law are different things. Until a bill passes the House, passes the Senate, and is signed by the President, the credit remains at $2,000 per child.

How the credit works if your income is very low

One feature of the Child Tax Credit is that it can be refundable, meaning you can receive money even if you owe no income tax. The refundable portion is called the Additional Child Tax Credit, and it is limited to $1,600 per child for 2024.

This matters most for families with very low income. If your tax liability is less than $2,000 but you have two may have access to children, you can receive up to $1,600 as a refund (the refundable limit), not the full $2,000. The rules for calculating this are complex, which is why many low-income families benefit from using free tax preparation services like VITA (Volunteer Income Tax information) or the IRS Free File program.

Frequently Asked Questions

Can I still get the monthly payments from 2021?

No. The monthly payments ended on December 31, 2021. If you received advance payments in 2021 but your final credit amount turned out to be smaller, you may have had to repay the difference when you filed your 2021 tax return. If you did not file a 2021 return, you may still owe money or be owed a refund.

Will Congress pass an expanded credit again?

It is possible, but it has not happened yet. Proposals have been introduced, but they have not passed both chambers and become law. Whether this occurs depends on future Congressional votes and cannot be predicted.

What if I did not claim the credit in 2021 because I thought I was ineligible?

You may still be able to claim it by filing an amended 2021 return using Form 1040-X. You have three years from the original due date to amend a return. A tax professional or VITA volunteer can help you determine whether you were may be able to access and whether amending is worth doing.

Does the $2,000 credit explore to adult dependents?

No. The Child Tax Credit applies only to may have access to children under age 17. If you support an adult child or adult relative, you may be able to claim them as a dependent for other tax purposes, but not for the Child Tax Credit.

How do I know if my child qualifies?

Your child must be under age 17 at the end of the tax year, have a valid Social Security number, be claimed as your dependent, live with you for more than half the year, and be your son, daughter, stepchild, foster child, sibling, or descendant of any of these. The IRS website has a detailed worksheet to help you verify each requirement.