Child Tax Credit 2022: How Next Year's Credit Could Be Different

President Biden wants to extend the enhancements made to the 2021 child tax credit – but with some important differences.

picture of family in their living room holding 2022 balloons
(Image credit: Getty Images)

The child tax credit for 2021 is bigger and better than ever. Enhancements made by the American Rescue Plan Act back in March increased the overall credit amount, allowed older children to qualify for the credit, made the credit fully refundable, and authorized monthly advance payments from July to December. But here's the bad news – all those changes are temporary. They only apply for 2021, and then they'll all go away.

However, President Biden and Congressional Democrats are pushing hard to extend those child tax credit enhancements. In fact, the latest version of the Build Back Better Act (as passed by the House) includes a provision to do just that. Under the proposed legislation, the 2021 version of the child tax credit would be extended for an additional year – but with some important changes.

Some of the proposed changes for 2022 would be good for parents with children. Others, not so good. How you could be affected may depend on your income, tax return filing status, child custody arrangements, or some other factor. To help you figure it all out and see where you would fit in under the latest proposal, here are 8 notable ways the 2022 child tax credit would differ from the 2021 credit under the Build Back Better Act. Of course, the legislation could change before it's finalized – or never make it out of Congress. But spending some time now to learn about the possible changes could help maximize next year's child tax credit.

Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.