Basics on the CTC
The Child Tax Credit (CTC) is a federal tax credit that helps families with qualifying children reduce their federal income tax liability.
The child tax credit comprises two components:
- Nonrefundable child tax credit (CTC); and
- The refundable portion of the CTC, which is the Additional Child Tax Credit (ACTC).
American Rescue Plan Increases CTC to $3,600 Per Child
For the 2021 tax year, the American Rescue Plan Act increased the child tax credit (CTC) amount from $2,000 to $3,600 per child. In addition, the IRS paid an advanced portion of the $3,600 to taxpayers during the last half of 2021.
The IRS later sent taxpayers a Letter 6419 to confirm the amount of advanced payments made during the year.
What are the Changes for 2022 and in the Future
The increase to $3,600 was a temporary increase that expired at the end of 2021. For 2022 and in the future, the credit amount will revert back to $2,000 per child unless Congress passes additional legislation to increase the credit amount.
Additional Pages Covering the Child Tax Credit
- CTC with Two Qualifying Children
- Filing Amended Form 1040 for the CTC
- What is the Support Test
- Impact on Unemployment Benefits
- Income Thresholds and Phaseouts
- CP79A Notice for Denied CTC
- What is the Additional Child Tax Credit
- Does the Child Need an SSN
- What is a Qualifying Child
- Sample Form 8812 for 2022
- Form 8862 for Disallowed Credit
- Grandparents Claim Grandchild for CTC
- CTC with No Income – 2022 Tax Returns
- CTC with No Income – 2023 Tax Returns
More Information on the Child Tax Credit
Taxpayers seeking more information on child tax credits can visit the IRS website and the IRS Form 8812 instructions for CTC and ACTC. The IRS Publication 501 (Dependents, Standard Deductions, and Filing Information) contains guidance on which persons can be claimed as dependents on Form 1040 (US Individual Income Tax Return).