The expanded Child Tax Credit expired at the end of 2021

The American Rescue Plan temporarily increased the Child Tax Credit from $2,000 per child to $3,600 for children under six and $3,000 for children ages six through seventeen. This expansion ran only through 2021. Starting in 2022, the credit reverted to $2,000 per child, where it remains today unless Congress passes new legislation.

The 2021 expansion also changed how the credit worked. Instead of claiming the full amount when you filed your tax return, the IRS sent advance payments directly to your bank account or by check each month from July through December 2021. This was the first time the Child Tax Credit functioned as a partially refundable monthly payment rather than a lump-sum tax benefit.

That monthly payment structure did not continue. For 2022 and beyond, you claim the full $2,000 credit on your tax return when you file, just as you did before 2021.

Key Takeaways

  • The expanded Child Tax Credit of $3,000 to $3,600 per child was temporary and expired on December 31, 2021.
  • The credit is now back to $2,000 per child for tax years 2022 and later, claimed on your tax return rather than paid monthly.
  • Congress would need to pass new legislation to extend or restore the higher credit amount or the monthly payment structure.
  • Your income level determines whether you receive the full $2,000 credit or a reduced amount on your 2024 return.

How the 2021 expansion worked

During 2021, the IRS sent monthly payments from July through December to families with may have access to children. The payment amount depended on your child's age and your household income. Families earning up to $150,000 (married filing jointly) or $75,000 (single filers) received the full expanded amount. Above those thresholds, the credit reduced by $50 for every $1,000 of income.

You did not have to take any action to receive these payments if you had filed a 2020 tax return. The IRS used that return to identify may be able to access families and send payments automatically. Families who did not file a 2020 return could register through a non-filer tool on the IRS website to receive the payments.

The monthly payments were an advance on the credit you would claim when filing your 2021 tax return. When you filed in 2022, you reported how much you had received in advance payments, and the IRS adjusted your refund or tax owed accordingly.

Why the expansion ended

The American Rescue Plan was a temporary economic relief measure passed in March 2021 in response to the COVID-19 pandemic. The expanded Child Tax Credit was part of that package and was written to expire on December 31, 2021. Congress did not pass legislation to extend it beyond that date.

Several proposals to extend or make the expansion permanent were introduced in Congress during 2021 and 2022, but none passed both chambers. The credit returned to its pre-2021 level of $2,000 per child starting with the 2022 tax year.

What you claim now on your tax return

For the 2024 tax year (the return you file in 2025), you claim $2,000 per may have access to child under age seventeen. The credit phases out if your modified adjusted gross income exceeds $400,000 (married filing jointly) or $200,000 (single filers). For every $1,000 over those thresholds, the credit reduces by $50.

To claim the credit, you need the child's Social Security number, proof they lived with you for more than half the year, and documentation that you paid for their care or support. You report this information on Schedule 8812 (Form 1040) when you file your return.

The credit is partially refundable, meaning you can receive up to $1,700 as a refund even if you owe no tax. The remaining $300 can only reduce your tax liability to zero.

Proposals to restore the expanded credit

Several bills have been introduced to restore the higher credit amounts or bring back the monthly payment structure. The Build Back Better Act, which passed the House in November 2021, would have extended the expanded credit through 2025, but it did not pass the Senate. Other proposals have surfaced in subsequent Congressional sessions, but none have become law.

If you want to track current proposals, the House Ways and Means Committee and Senate Finance Committee websites list bills related to the Child Tax Credit. You can also check Congress.gov to search for bills by keyword.

How income limits affect your credit

Your income determines whether you receive the full $2,000 credit or a reduced amount. The phase-out begins at $400,000 of modified adjusted gross income for married couples filing jointly and $200,000 for single filers, head of household, and may have access to widow(er)s.

If your income is $401,000 (married filing jointly), your credit reduces by $50. At $402,000, it reduces by $100, and so on. This phase-out continues until the credit reaches zero. For most families, the full $2,000 credit is available because their income falls below the phase-out threshold.

Frequently Asked Questions

Can I still get the monthly payments from 2021?

No. The monthly advance payments ended in December 2021. If you did not receive all the payments you were owed, you could have claimed the missing amount when you filed your 2021 tax return. That opportunity has passed, but you can contact the IRS if you believe you were owed a payment you never received.

What if I had a child in 2022 or later?

You claim $2,000 for that child on the tax return for the year they were born, provided they have a Social Security number and meet the other requirements. You do not receive monthly payments; you claim the full credit when you file.

Is there any chance the expanded credit will come back?

Only if Congress passes new legislation. There is no automatic mechanism to restore it. You can contact your representatives to express your views on whether the credit should be expanded again.

Do I have to do anything special to claim the $2,000 credit on my 2024 return?

You report the credit on Schedule 8812 when you file Form 1040. Your tax software will typically walk you through the questions needed to determine your credit amount. You will need each child's Social Security number and proof they lived with you for more than half the year.