Will Monthly Child Tax Credit Payments Continue in 2022?

Millions of families and households got use to getting a monthly dependent payment from the IRS in 2021. This payment, known as the child tax credit, was generally claimed via tax return filings in prior years.

Instead, as part of Biden’s ARPA stimulus bill to provide pandemic relief for households and their dependents, it was increased and half the payment was made in advance during 2021 via monthly installments administered by the IRS. The second half of the 2021 CTC payment will need to be claimed when filing your tax return, and is subject to the upcoming IRS refund processing schedule.

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I have written detailed articles covering FAQs for this payment, but the main one being asked now is whether or not families will continue to get paid monthly in 2022, starting with the first payment on January 15, 2022.

The short answer is NO since a funding extension for 2022 payments has not yet been approved by Congress. But this may not preclude these payments coming later in the year, including catch-up payments as discussed below.

If funding is passed under the Biden Build Back Better (BBB) bill currently being negotiated in the Senate, then retroactive payments could be made for missed months. This was done for the 2021 monthly payments as many families had to wait for the IRS to verify information, which resulted in them missing the first few payments. This was then “caught-up” by the IRS via subsequent larger monthly payments.

While the Biden BBB bill has proposed funding that will allow the CTC to be paid in monthly installments in 2022 it has been held up in Congress as Sen. Joe Manchin (D) of West Virginia is refusing to endorse the CTC extension and overall bill without limiting the payment to households with at least one working parent (getting a W2 or 1099).

Since the BBB is being passed along party lines, the Democrats will need to agree on how this credit is structured, including the final amount and qualifying income thresholds. Given this credit is just one of many items under review withing the BBB, it could take a while to see payments in 2022.

There may even be the possibility that no monthly payments if the bill is not passed. The CTC will also revert to its prior, much smaller, amount and only claimable in your annual tax filing as was the case in previous years.

I will continue to post updates on the potential of 2022 monthly payments, and you can follow along via the options below.

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