The expanded Child Tax Credit (CTC) program introduced under the American Rescue Plan Act of 2021 provided a financial lifeline for millions of families. This program is distributed up to $300 per month per child under age 6 and $250 per month per child aged 6 to 17, helping families manage increased living expenses during the COVID-19 pandemic.
While the monthly payments ended in December 2021, many families are still catching up on what they might have missed. Here’s a breakdown of how the program works, eligibility details, and what families can do if they don’t receive these payments.
How the Monthly Payments Worked
The Child Tax Credit payments offered advance payouts to eligible families, covering half the total CTC amount in 2021. Families could claim the remaining half when filing their 2021 tax returns.
- Payment Amounts:
- Up to $300 per month for each child under 6.
- Up to $250 per month for each child aged 6 to 17.
- Payment Schedule: Payments were issued on the 15th of each month unless the date fell on a weekend or holiday, in which case payments were made earlier.
Who Was Eligible?
Eligibility for the Child Tax Credit was determined by income thresholds:
- Full Credit Income Limits:
- $75,000 for single filers.
- $112,500 for heads of household.
- $150,000 for married couples filing jointly.
- Partial Credit: Families with higher incomes received reduced payments based on their adjusted gross income (AGI).
To qualify, families also needed to meet these conditions:
- Filed a 2019 or 2020 tax return or used the IRS Non-Filers tool.
- Had qualifying children under the age of 18 with valid Social Security numbers.
What If You Missed the Payments?
Families who did not receive the advance payments in 2021 can still claim the full Child Tax Credit by filing a 2021 federal income tax return. The IRS has emphasized that families should ensure all eligible dependents are included on their tax returns to claim the credit.
Key Considerations for Families
- Opt-Out Option: Some families chose to opt out of monthly payments to receive the full credit as a lump sum during tax season.
- Non-Filers: Low-income families who didn’t file tax returns could register using the IRS Non-Filer Sign-Up Tool to access their payments.
- Future Updates: Although the expanded Child Tax Credit ended in December 2021, discussions about extending the program continue. Families should monitor IRS updates for potential changes.
What’s Next?
As of January 2025, there have been no new approvals for monthly CTC payments. However, families who missed payments during the program can still claim their credits retroactively by filing or amending their 2021 tax return.
To stay informed, visit the IRS website or consult with a tax professional.
