The Child Tax Credit was expanded in 2021, then the expansion ended in December 2022

The Child Tax Credit is a federal tax benefit that reduces the amount of income tax you owe. In 2021, Congress temporarily expanded it as part of the American Rescue Plan. That expansion — which increased the credit amount and made it easier to receive — ran for one year only. When 2022 ended, the credit went back to its previous, smaller size.

This matters because if you received the expanded credit in 2021, your tax situation changed starting in 2022. The credit still exists, but it is smaller and works differently than it did that one year.

Key Takeaways

  • The expanded Child Tax Credit of 2021 ended on December 31, 2022, and the credit returned to its previous amount and rules.
  • In 2021, the credit was up to $3,600 per child under age 6 and up to $3,000 per child ages 6 to 17; starting in 2022, it went back to $2,000 per child.
  • In 2021, the IRS sent monthly payments to families; starting in 2022, you claim the full credit on your tax return instead.
  • The current Child Tax Credit still reduces your federal income tax, but you must have earned income and meet income limits to receive it.

What the 2021 expansion included

The 2021 expansion made three major changes. First, it raised the credit from $2,000 per child to $3,600 for children under age 6, and to $3,000 for children ages 6 to 17. Second, it allowed the IRS to send half the credit as monthly payments directly to families from July through December 2021 — you did not have to wait until tax time. Third, it removed the requirement that you have a certain amount of earned income to receive the full credit.

These changes were temporary by design. Congress set them to expire at the end of 2021, though the credit itself continued into 2022 at the older amount and rules.

How the credit works now, after the expansion ended

Starting in 2022, the Child Tax Credit returned to $2,000 per child, with no monthly payments. You now claim the entire credit on your federal tax return for the year — you do not receive any money from the IRS before you file. The credit reduces the amount of tax you owe, dollar for dollar.

To claim the credit, you must have earned income (wages, self-employment income, or certain other sources) and your modified adjusted gross income must be below a threshold. For 2022, that threshold was $400,000 for married couples filing jointly and $200,000 for single filers. The exact threshold changes each year.

If the credit is larger than the tax you owe, you may receive a refund for the difference — but only up to $1,600 per child under age 17. This is called the refundable portion of the credit.

Why the expansion ended

Congress included the expanded credit in the American Rescue Plan, a law passed in March 2021 to provide economic relief during the pandemic. The law set the expansion to last only through December 31, 2021. Congress did not pass a new law to extend it beyond that date.

Some lawmakers proposed extending the expansion in 2022 and beyond, but those proposals did not pass both chambers of Congress. As a result, the credit returned to its previous form starting with the 2022 tax year.

What you need to know if you received the 2021 payments

If you received monthly Child Tax Credit payments in 2021, you should have received a letter from the IRS (Form 6419) showing the total amount paid to you. When you file your 2021 tax return, you will need to report this amount. The IRS uses it to make sure you received the correct total credit for the year.

If you received more in monthly payments than you were actually may have access to to — for example, because your income was higher than you reported, or because your family situation changed — you may owe money back when you file. If you received less than you were may have access to to, you can claim the difference on your return.

Whether Congress might expand the credit again

There is no current law that restores the 2021 expansion. Proposals to do so have been introduced in Congress, but none have passed both the House and Senate. Whether the credit will be expanded in the future depends on future legislative action, which cannot be predicted.

If you want to track potential changes, you can check the IRS website or contact your elected representatives. Tax law changes are announced through official government channels, not through private websites.

Frequently Asked Questions

Do I still get the Child Tax Credit now?

Yes. The credit still exists at $2,000 per child. You claim it on your federal tax return, and it reduces the tax you owe. You do not receive monthly payments anymore — the entire credit is claimed when you file.

What if I got too much money in 2021 payments?

You may owe some of it back. When you file your 2021 return, report the amount shown on Form 6419 (the IRS letter you received). The IRS will calculate whether you owe a repayment. Some families are protected from having to repay certain amounts under rules that limit repayment for lower-income households.

Can I get monthly payments again?

Not under current law. The monthly payment option ended December 31, 2021. You would need Congress to pass a new law to bring it back. For now, you claim the full credit on your tax return each year.

Does the credit still require earned income?

Yes, starting in 2022. You must have earned income to claim the full credit. In 2021, that requirement was removed temporarily, but it came back when the expansion ended.