The Child Tax Credit is currently law, but the expanded version from 2021 expired
Yes, the Child Tax Credit exists and is in effect right now. For 2024, you can claim up to $2,000 per child under age 17 on your federal tax return. However, the expanded Child Tax Credit that ran from 2021 through 2022 — which gave monthly payments of $250 to $300 per child directly to families — is no longer available. That temporary expansion ended on December 31, 2022.
The current Child Tax Credit works the way it did before 2021: you claim it when you file your taxes, not as monthly payments. The credit reduces the federal income tax you owe, and if the credit is larger than your tax bill, you may receive the difference as a refund. This is called a refundable credit, but the refund portion is capped at $1,700 per child for 2024.
Congress has not passed a new law to restore the expanded version, though proposals to do so have been introduced in recent years. For now, the credit available to you is the permanent one that has existed since 1997, with adjustments for inflation each year.
Key Takeaways
- The Child Tax Credit of up to $2,000 per child is permanent law and available on your 2024 tax return.
- The temporary expanded version that sent monthly payments in 2021 and 2022 ended and has not been restored.
- You claim the current credit on your tax return, not through monthly payments to your bank account.
- The refundable portion (money you get back if the credit exceeds your tax bill) is capped at $1,700 per child for 2024.
How the current Child Tax Credit works
The Child Tax Credit reduces your federal income tax dollar-for-dollar. If you owe $1,500 in federal tax and you have one may have access to child, the $2,000 credit wipes out that $1,500 and leaves you with a $500 refund. The refund you receive is limited to $1,700 per child, even if your credit is larger.
To claim the credit, the child must be under age 17 at the end of the tax year, have a valid Social Security number, and live with you for more than half the year. You must also have earned income during the year — the credit is not available to people with no income. Your income also matters: the credit begins to phase out at $400,000 for married couples filing jointly and $200,000 for single filers.
You claim the credit on Form 1040 when you file your taxes, usually between January and April. You do not receive money before you file; the credit is calculated as part of your return.
What changed when the expanded credit ended
From July 2021 through December 2022, families with children received monthly payments of $250 per child ages 6 to 17, and $300 per child under age 6. These payments came automatically to your bank account or by check — you did not have to wait until tax time. Roughly 36 million children received these payments.
That expansion was part of the American Rescue Plan Act, passed in March 2021. It was temporary by design, set to expire at the end of 2022. Congress did not extend it, so the program ended. Families went back to claiming the credit only on their tax returns.
Several bills have been introduced in Congress since then to restore or make permanent a similar monthly payment system, but none have passed both chambers and been signed into law. The credit you can use today is the one that existed before 2021.
Income limits and phase-out rules
Your income determines whether you can claim the full $2,000 credit or a reduced amount. For 2024, the credit begins to reduce if your income exceeds $400,000 (married filing jointly) or $200,000 (single, head of household, or may have access to widow/widower). For each $1,000 over the threshold, the credit reduces by $50.
If your income is below these thresholds, you can claim the full credit. The phase-out is gradual, so even if you are slightly over the limit, you may still receive a substantial credit. You calculate the exact amount on Schedule 8812 when you file your return.
How to claim the credit on your tax return
You report the Child Tax Credit on Form 1040, Schedule 8812 (if your income is high enough that the credit phases out) or directly on the form itself if you are claiming the full amount. You will need each child's Social Security number, their relationship to you, and confirmation that they lived with you for more than half the year.
If you use tax software or work with a tax preparer, they will ask you these questions and calculate the credit for you. If you file by hand, you follow the instructions on the form. The IRS does not send you a separate notice about the credit; it is part of your overall tax return.
If you received the expanded monthly payments in 2021 or 2022, you do not need to do anything special on your 2024 return. Those payments were separate from the credit you claim now. You simply claim the current credit based on your 2024 income and the children who lived with you during 2024.
What to do if you think you were underpaid or missed payments
If you received the expanded monthly payments in 2021 or 2022 and believe the amount was wrong, the IRS has already closed those cases. The payments ended in December 2022, and the IRS does not reopen payment disputes for that program. If you have questions about whether you received the correct amount, you can contact the IRS directly, but they cannot adjust payments that have already been issued.
If you did not receive the expanded payments but think you should have, that window has also closed. The program ended more than a year ago, and the IRS is not processing new claims for it. Your option now is to claim the current Child Tax Credit on your tax return if you meet the requirements.
Proposals to restore monthly payments
Several members of Congress have introduced bills to restore a monthly Child Tax Credit payment system similar to what existed in 2021 and 2022. These proposals vary: some would make the expanded credit permanent, others would restore it temporarily, and some would increase the amount per child. None of these bills have passed both the House and Senate and been signed into law.
If you want to know whether a new bill has been introduced or passed, you can search Congress.gov by typing "Child Tax Credit" in the search box. The site shows the status of all bills in real time. You can also contact your representative or senator's office to ask about their position on restoring the credit.
Frequently Asked Questions
Can I get the expanded monthly payments again?
No. The expanded Child Tax Credit that provided monthly payments ended on December 31, 2022, and Congress has not restored it. You can only claim the current credit on your tax return. If a new law passes to restore monthly payments, it would apply to future years, not past ones.
Do I have to pay back the monthly payments I received in 2021 and 2022?
No. Those payments were not loans. You do not have to repay them, and the IRS does not expect you to. If you received more than you were may have access to to, the IRS may have adjusted your 2021 or 2022 tax refund, but that process is complete.
What if my income was too high to get the expanded payments but I still have a child?
You may still be able to claim the current Child Tax Credit. The income thresholds are higher now ($400,000 for married couples, $200,000 for single filers). Check your 2024 income against these limits. If you are below them, you can claim the credit on your return.
When will Congress decide whether to bring back monthly payments?
There is no set date. Bills are introduced regularly, but they move through Congress slowly. You can track the status of any bill on Congress.gov. If you want to push for a new law, contact your representative or senator's office and tell them your position.
Can I claim the credit if I did not file taxes in 2021 or 2022?
Yes, you can claim the credit on your 2024 return if you meet the requirements for that year. Not filing in previous years does not disqualify you from claiming the credit now. However, if you think you were may have access to to the expanded payments in 2021 or 2022 and did not receive them because you did not file, you cannot go back and claim those payments now.