The expanded Child Tax Credit ended after 2021

The Child Tax Credit still exists, but the expanded version that ran from 2021 through mid-2022 is no longer in effect. Here's what changed: from July 2021 to December 2021, the IRS sent monthly payments of $250 to $300 per child directly to families. That program ended. The regular Child Tax Credit — which lets you claim up to $2,000 per child when you file your taxes — remains available, but it works differently than the temporary expansion did.

The expanded credit was part of the American Rescue Plan Act, a temporary measure that Congress did not renew. When it expired at the end of 2021, the credit reverted to its previous form. If you have children and file taxes, you can still claim the regular credit on your 2024 tax return, but you won't receive monthly payments like families did in 2021.

Key Takeaways

  • The monthly Child Tax Credit payments that ran from July to December 2021 ended and were not extended beyond that period.
  • The regular Child Tax Credit of up to $2,000 per child still exists and can be claimed on your annual tax return.
  • To claim the credit now, you must file a tax return; there are no automatic monthly payments sent to your bank account.
  • Income limits explore to who can claim the full credit, and the amount phases out as income rises above certain thresholds.

How the expanded credit worked in 2021

During 2021, families with children received monthly payments because Congress temporarily increased the Child Tax Credit and changed how it was paid out. Instead of waiting until tax time to claim the credit, the IRS sent payments directly to bank accounts or by mail starting in July 2021. Families with one child received $250 per month; families with children under age 6 received $300 per month per child.

These payments were an advance on the credit you could claim on your 2021 tax return. The idea was to put money in families' hands during the year rather than making them wait until the following spring. The program was popular, but Congress did not include funding to continue it past December 2021, so the monthly payments stopped.

The regular Child Tax Credit today

The standard Child Tax Credit allows you to reduce your federal income tax by up to $2,000 for each child under age 17 who is a U.S. citizen, national, or resident alien. You claim this credit when you file your tax return, usually in early 2025 for the 2024 tax year. The credit is "refundable," which means if the credit is larger than the taxes you owe, the IRS sends you the difference as a refund.

The credit begins to phase out if your income exceeds certain thresholds. For the 2024 tax year, the phase-out begins at $400,000 for married couples filing jointly and $200,000 for single filers. The exact income limits change each year based on inflation. You'll need to report your children's Social Security numbers and meet other requirements when you file.

Income limits and who can claim the credit

Not everyone receives the full $2,000 per child. The amount you can claim depends on your income. If your income is below the phase-out threshold for your filing status, you get the full credit. Once your income exceeds the threshold, the credit reduces by $50 for each $1,000 (or fraction of $1,000) of income above the limit.

You must also meet other conditions: the child must be your dependent, under age 17 at the end of the tax year, and have a valid Social Security number. If you have multiple children, you can claim the credit for each one who meets these requirements. The IRS worksheet on your tax form or your tax software will calculate the exact amount you're may have access to to based on your specific situation.

What changed between 2021 and now

The biggest change is the payment method. In 2021, the IRS sent money to you automatically each month without you having to file a tax return first. Now, you must file a tax return to claim the credit at all. There are no monthly advance payments, and you won't receive any money until after you file and the IRS processes your return.

The credit amount also changed. In 2021, it was temporarily increased and made fully refundable. Today, the credit is back to $2,000 per child, which is lower than the expanded amount. The phase-out income thresholds are also different from 2021. These changes mean families receive less total money from the credit than they did during the expansion year.

How to claim the credit on your 2024 tax return

When you file your 2024 tax return (usually between January and April 2025), you'll report your children on Schedule 8812 or directly on your Form 1040, depending on which form you use. You'll need each child's name, date of birth, and Social Security number. If you use tax software, it will walk you through the questions and calculate the credit automatically.

If you file with a tax preparer or accountant, tell them about all your children under 17 so they don't miss the credit. The credit reduces your tax bill dollar-for-dollar, and any amount left over after your tax is paid to zero becomes a refund. You don't need to do anything special to receive it — it happens when your return is processed.

Frequently Asked Questions

Can I still get monthly Child Tax Credit payments?

No. The monthly payment program ended in December 2021 and was not extended. You can only claim the Child Tax Credit now by filing a tax return. The credit is then applied to reduce your taxes owed or issued as a refund if you're may have access to to more than you owe.

What if I didn't claim the credit in 2021 — can I get it now?

The 2021 tax year is closed, so you cannot go back and claim the expanded credit from that year. However, you can claim the regular Child Tax Credit on your 2024 return for children you have now. If you need to amend a 2021 return, you would need to file Form 1040-X, but the credit amount would still be limited to what was available in 2021.

Does my income affect how much credit I get?

Yes. If your income is below $400,000 (married filing jointly) or $200,000 (single), you get the full $2,000 per child. Above those thresholds, the credit reduces by $50 for each $1,000 of income over the limit. Your tax software or preparer will calculate the exact amount based on your income.

Do I have to file a tax return to claim the credit?

Yes. Unlike the 2021 expansion, there are no automatic payments. You must file a federal tax return to claim the Child Tax Credit. Even if you have no income or your income is very low, filing allows you to receive the refundable portion of the credit.

What information do I need to claim the credit for my children?

You'll need each child's full name, date of birth, and Social Security number. The child must be under 17 at the end of the tax year, be your dependent, and be a U.S. citizen, national, or resident alien. Have this information ready when you file your return or meet with a tax preparer.