$3,600 Child Tax Credit Coming Back: If you’re a parent, guardian, or even someone thinking about starting a family, chances are you’ve heard talk about the potential return of the $3,600 Child Tax Credit in 2025. This enhanced credit, initially introduced during the height of the COVID-19 pandemic through the American Rescue Plan in 2021, was a transformative support for many families across the United States. For a limited time, it offered monthly cash payments and a significant increase to the annual tax credit, easing the burden of child-related expenses during uncertain economic conditions.
Since then, the enhanced version has expired and reverted to its pre-pandemic format. However, with growing political momentum and new proposals in Congress, many are hopeful that some version of the expanded Child Tax Credit (CTC) will return. In this article, we’ll explore what’s currently in place, what’s being proposed, and what steps families can take now to stay informed and prepared.
$3,600 Child Tax Credit Coming Back
| Detail | Information | Source / Link |
|---|---|---|
| Current CTC for 2024 (filed 2025) | $2,000 per child; up to $1,700 refundable | NerdWallet |
| Proposed Expansion | $3,600 per child aged 6–17; $4,320 for ages 1–6; $6,360 for newborns (American Family Act) | Sen. Bennet |
| Refundable Portion in Proposal | 100%, with monthly payments possible | 19th News |
| GOP Counter-Proposal | $5,000 per child (Sen. Josh Hawley proposal) | Axios |
| Scheduled Reversion (2026) | Credit could revert to $1,000 per child if TCJA expires | Thomson Reuters |
| Next Legislative Milestone | Senate review of Tax Relief for American Families and Workers Act (includes CTC adjustments) | Wikipedia |
The future of the $3,600 Child Tax Credit is still uncertain, but momentum is growing. From comprehensive proposals like the American Family Act to incremental reforms like the Tax Relief for American Families and Workers Act, the landscape is active. Parents and caregivers should remain vigilant, educated, and proactive in their financial planning.
Until new laws are passed, the best course of action is to make the most of the current credit, file taxes correctly, and be ready for whatever changes may come.
What Is the Child Tax Credit?
The Child Tax Credit is a federal tax benefit that reduces the amount of income tax you owe for each qualifying child in your household. The credit can be partially or fully refundable, meaning you may receive a tax refund even if you owe no income tax. It has long been a cornerstone of federal support for families.
In 2021, the American Rescue Plan temporarily increased the benefit and introduced monthly payments. For the first time, families received up to $3,600 per child under 6 and $3,000 for children aged 6–17, with half of the total sent out in monthly checks. The change was credited with reducing child poverty by over 40% at its peak, according to research from Columbia University.
After the one-year expansion expired, the credit reverted to:
- $2,000 per child under age 17
- Up to $1,700 refundable via the Additional Child Tax Credit (ACTC)
- Phase-out thresholds beginning at $200,000 for single filers and $400,000 for joint filers
This structure remains in place for the 2024 tax year, to be filed in 2025.
What Could Change: The American Family Act
What It Proposes
In April 2025, a group of Democratic lawmakers introduced the American Family Act, a comprehensive proposal to permanently restore and enhance the CTC. The plan outlines:
- $6,360 for newborns under age 1
- $4,320 for children aged 1–6
- $3,600 for children aged 6–17
- Full refundability, regardless of earned income
- Monthly payments to provide stability and reduce financial stress
Supporters argue this will not only alleviate short-term poverty but improve long-term outcomes such as health, academic success, and parental employment. The proposal is modeled after the 2021 structure but with added enhancements.
Opposition and Counter-Proposals
Despite the wide support among Democrats, some Republicans remain skeptical due to the cost—estimated at over $100 billion annually—and potential impact on work incentives.
Senator Josh Hawley’s Plan
Senator Josh Hawley of Missouri has proposed an alternative: a $5,000 per child credit targeted specifically toward working families. Key features include:
- Employment verification or proof of work
- Incentives for married couples
- Tighter income restrictions
While this proposal addresses work incentive concerns, critics argue it may leave out the most vulnerable families who cannot meet these added requirements.
What the Law Says Right Now (2024 Filing in 2025)
Unless new legislation is passed, these rules apply:
- $2,000 per child under age 17
- $1,700 of that may be refundable
- Eligibility requires:
- U.S. citizenship or residency
- Social Security number for the child
- The child living with you for more than half the year
Be aware of phase-out ranges based on your modified adjusted gross income:
- Starts at $200,000 (single/head of household)
- $400,000 (married filing jointly)
- For updated eligibility tools and information, visit the IRS Child Tax Credit page.
What Happens After 2025?
Many current provisions, including the higher CTC amount and income thresholds, were part of the Tax Cuts and Jobs Act (TCJA) of 2017 and are set to expire in 2025. If no new law is passed, the CTC would revert to:
- $1,000 per child
- Stricter income qualifications
- Lower refundability, making it less valuable for lower-income households
This could lead to a significant drop in after-tax income for families, especially those already struggling to make ends meet. Many lawmakers are eager to avoid this rollback, making the CTC a key item in 2025 tax reform negotiations.
The Tax Relief for American Families and Workers Act
Separate from the American Family Act, another bill making its way through Congress is the Tax Relief for American Families and Workers Act. It proposes:
- Incremental increases to the refundable portion of the CTC:
- $1,800 for tax year 2023
- $1,900 for tax year 2024
- $2,000 for tax year 2025
- New income calculation rules to include more working families
This proposal may act as a bipartisan compromise, bridging the gap between progressive and conservative approaches to child and family support.
Why the Child Tax Credit Is So Important
For millions of families, the CTC is more than a tax break—it’s a financial lifeline. It helps with:
- Rent and mortgage payments
- Childcare and education expenses
- Medical bills and health insurance
- Nutrition and grocery purchases
Studies consistently show that lifting families out of poverty in childhood leads to better long-term results in adulthood. By providing reliable, monthly support, the CTC can help prevent families from falling into crisis and give children a better start in life.
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Action Steps: What You Should Do Right Now
If you want to be prepared regardless of what Congress decides, here’s what you can do:
- File Your 2024 Taxes Promptly – Ensure all dependent information is accurate and up to date.
- Update Banking Information – Especially important if monthly payments return.
- Use the IRS CTC Estimator – Check your eligibility and projected benefit.
- Follow Reputable News Sources – Stay on top of changes from official government outlets.
- Contact Your Lawmakers – Make your voice heard through emails, calls, and local events.
- Sign Up for Advocacy Alerts – Organizations like the Center on Budget and Policy Priorities provide real-time updates and guidance.
FAQs On $3,600 Child Tax Credit Coming Back
Will the $3,600 Child Tax Credit be available in 2025?
Not yet. Proposals are in discussion, but no law has reinstated the enhanced amount for 2025.
Can I expect monthly payments this year?
Not unless new legislation is passed. Right now, payments are annual through tax returns.
Who qualifies for the full $2,000 credit?
Those earning below $200,000 (single) or $400,000 (joint) and with a qualifying child under age 17.
What happens in 2026?
The credit will shrink to $1,000 per child unless Congress updates the tax code.
What if my child doesn’t have a Social Security Number?
Unfortunately, the child won’t qualify for the CTC but may be eligible for the Credit for Other Dependents.
