The Senate did not pass a permanent expansion of the Child Tax Credit after 2021
The Child Tax Credit was temporarily expanded during the COVID-19 pandemic. In 2021, families with children under 17 received up to $3,600 per child instead of the usual $2,000. The Senate did not vote to make this expansion permanent. The credit returned to $2,000 per child starting in 2022, where it remains today unless Congress changes the law again.
The expanded credit was part of the American Rescue Plan, which passed in March 2021. That law set an expiration date: the higher amount would only apply to the 2021 tax year. When that year ended, the credit went back to its previous level. Since then, multiple proposals to extend or restore the higher amount have been introduced in Congress, but none have become law.
Key Takeaways
- The Child Tax Credit was $3,600 per child in 2021 only; it returned to $2,000 per child in 2022 and has stayed there.
- The Senate did not pass legislation to extend the higher amount beyond 2021.
- The current $2,000 credit applies to children under 17 and is claimed on your federal tax return.
- You do not receive the credit automatically — you must claim it when you file your taxes or through an IRS form if you have no tax filing requirement.
How the 2021 expansion worked and why it ended
In 2021, the IRS sent monthly payments to families who met income thresholds. Families received $300 per month for each child under 6, or $250 per month for each child ages 6 to 17. These payments were advance payments on the credit they would claim on their 2021 tax return. The total for the year came to $3,600 for younger children and $3,000 for older children.
This temporary expansion was designed to reduce child poverty during the pandemic. It was included in the American Rescue Plan Act, which Congress passed with an expiration date built in. The law stated the higher credit would apply only to tax year 2021. When 2022 began, the credit automatically reverted to $2,000 per child, the amount that had been in place since 2017.
What the Child Tax Credit is today
The current Child Tax Credit is $2,000 per may have access to child under age 17. You claim it on your federal tax return (Form 1040) using Schedule 8812 if you have other credits or if you need to calculate the refundable portion. The credit reduces the federal income tax you owe, dollar for dollar.
Part of the credit is refundable, meaning you can receive money back even if you owe no tax. The refundable portion is limited to 15 percent of your earned income above $2,500, with a maximum refund of $1,700 per child. The rest of the credit is non-refundable, so it can only reduce your tax liability to zero.
Income limits apply. For 2024, the credit begins to phase out at $400,000 of modified adjusted gross income for married couples filing jointly, and $200,000 for single filers. The credit reduces by $50 for each $1,000 (or fraction thereof) of income above these thresholds.
Proposals to restore the higher credit
Since the expanded credit ended, lawmakers from both parties have introduced bills to bring back the higher amount or make it permanent. None of these proposals have passed both chambers of Congress and been signed into law. The proposals vary in what they would do: some would restore the $3,600 amount, others would increase it further, and some would change how the credit is paid out (monthly versus claimed on taxes).
These proposals remain in committee or have stalled. Congress has not voted on them as standalone bills. Tax policy changes typically happen as part of larger budget bills or tax reform packages, which require agreement across both chambers and the President's signature.
How to claim the Child Tax Credit on your taxes
You claim the Child Tax Credit when you file your federal income tax return. You will need the Social Security number of each may have access to child. A may have access to child must be under 17 at the end of the tax year, be your son, daughter, stepchild, foster child, sibling, or descendant of any of these, live with you for more than half the year, and be a U.S. citizen, national, or resident alien.
If you file Form 1040, you report the credit on Schedule 8812. If you use tax software, it will walk you through the questions and calculate the credit for you. If you do not owe federal income tax but have earned income, you may still be able to claim the refundable portion of the credit and receive a payment from the IRS.
You can also claim the credit if you file Form 1040-NR (if you are a nonresident alien) or certain other forms, depending on your situation. The IRS website has a tool to help you determine if you can claim the credit.
What changed between 2021 and 2022
| Feature | 2021 | 2022 and later |
|---|---|---|
| Credit per child under 6 | $3,600 | $2,000 |
| Credit per child ages 6–16 | $3,000 | $2,000 |
| Payment method | Monthly advance payments plus tax return claim | Claimed on tax return only |
| Refundable portion | Up to $1,800 per child | Up to $1,700 per child |
| Income phase-out threshold (married filing jointly) | $400,000 | $400,000 |
Frequently Asked Questions
Can I still get the $3,600 credit if I did not receive it in 2021?
No. The $3,600 credit applied only to tax year 2021. If you did not claim it on your 2021 tax return, you cannot claim it now. If you filed a 2021 return without claiming the credit and are now may be able to access, you can file an amended return (Form 1040-X) to claim it, but only within the time limit set by the IRS (usually three years from the original due date).
Will Congress bring back the expanded credit?
It is uncertain. Proposals exist, but none have passed both chambers. Any change would require a new law signed by the President. Tax policy changes happen through the legislative process, which can take months or years. You can check Congress.gov to see the status of current proposals.
Do I have to file taxes to get the Child Tax Credit?
You must file a tax return to claim the credit, even if you have no tax liability. If you have earned income but do not owe tax, filing allows you to receive the refundable portion of the credit as a payment from the IRS. The IRS does not send the credit automatically.
What if my income is above the phase-out limit?
If your modified adjusted gross income exceeds the threshold for your filing status, the credit reduces by $50 for each $1,000 of income above that amount. You may still be able to claim a partial credit. Use the IRS worksheet or tax software to calculate the exact amount.