INSIGHTi

The Child Tax Credit in the October 28
Modified Version of the Build Back Better Act:
Summary Table
October 29, 2021
On October 28, 2021, the House Rules Committee posted a modified version of the Build Back Better Act
(BBBA; H.R. 5376) that reflected the Biden Administration’s framework. This modified bill would
extend the 2021 expansion of the child credit for one year—2022—and would permanently make the
credit fully refundable beginning in 2023. As a result of these changes, many taxpayers in 2022 would
continue to receive a monthly benefit of up to $300 per young child (0-5 years old) and up to $250 per
older child (6-17 years old). Other aspects of the proposed credit in 2022 are similar to those in effect for
2021.
This proposal extends and modifies the 2021 expansion of the child tax credit enacted under the American
Rescue Plan Act of 2021 (ARPA; P.L. 117-2). At the end of September 2021, the House Budget
Committee reported the BBBA (H.R. 5376), which would have effectively extended the ARPA-expanded
credit through the end of 2025 and permanently made the credit fully refundable. (That proposal’s
changes to the child credit are summarized here.)
The modified legislation (released October 28) is similar to the child credit provisions in the House
Budget Committee reported BBBA (reported on September 27). Major differences include the following:
 The 2021 expansion of the child credit (and advance payments) would be extended for
one year under the October 28 legislation—2022—as opposed to through the end of 2025
under the House Budget Committee reported bill.
 Advance payments of the 2022 credit would generally only be issued to taxpayers with
incomes under $150,000 if married filing jointly or income under $112,500 if a head of
household filer under the October 28 legislation, as opposed to the House Budget
Committee reported bill.
 The 2022 child credit parameters would not be indexed for inflation under the October 28
legislation, unlike the House Budget Committee bill, which included an indexing
provision.
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Major changes to the child tax credit made by the October 28 modified legislative text are summarized
below in Table 1. However, Table 1 is not a comprehensive accounting of every change included in the
October 28 BBBA text, nor does it include specific details for every proposed change. The figures
following the table illustrate the annual credit amount by income for different years.
Table 1. Selected Parameters of the Child Tax Credit
Under the October 28 Modified Version of the Build Back Better Act (H.R. 5376)
Current Law

2021a (including changes
Proposed
Proposed
Proposed
Parameter
made by ARPA)
2022
2023-2025
After 2025
Maximum
$3,600 per child 0-5 years old
Same as 2021
$2,000 per child 0-16
$1,000 per child 0-16
Credit

years old
years old
Amount
$3,000 per child 6-17 years old
not adjusted for inflation not adjusted for inflation
not adjusted for inflation

Credit
$3,600 per child 0-5 years old
Same as 2021
$2,000 per child 0-16
$1,000 per child 0-16
Amount Low-

years old
Income
$3,000 per child 6-17 years old
Taxpayers
Can Receive
Ful y refundableb
Ful y refundableb
Ful y refundableb
Fully refundable means low-income

taxpayers (i.e., those with little to no
income and who owe little to nothing
in income taxes) receive the “full” or
maximum credit amount, irrespective
of their income.

Maximum
$300 per young child
Same as 2021
N/A. No monthly
N/A. No monthly
Monthly
$250 per older child
payment of credit.
payment of credit.
Amount
not adjusted for inflation
Phaseout
Initial Threshold
Same as 2021
$400,000 MFJ
$110,000 MFJ
Threshold(s)
(Phaseout of Increased Credit)
$200,000 HOH
$75,000 HOH
MFJ: married
$150,000 MFJ
$200,000 S
$75,000 S
filing jointly
$112,500 HOH
HOH: head of
$75,000 S
household
S: single
Second Threshold

(Phaseout of Pre-ARPA Credit)
$400,000 MFJ
$200,000 HOH
$200,000 S
Income
No
Yes. Lowest income of No
No
Lookback for
the current year
Phaseout
(2022) and preceding
year (2021).
ID
Work-authorized SSN
Any taxpayer ID (e.g.,
Same as 2022
Same as 2022c
Requirement
SSN/I TIN/ATIN)
of Qualifying
Child

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Current Law

2021a (including changes
Proposed
Proposed
Proposed
Parameter
made by ARPA)
2022
2023-2025
After 2025
ID
Any taxpayer ID (e.g., SSN/ITIN)
Same as 2021
Same as 2021
Same as 2021
Requirement
of Taxpayer
Maximum
17 years old
17 years old
16 years old
16 years old
Qualifying
Child Age
Method of
Up to 50% advanced; remainder
Up to 100% advanced
No advance. Credit
No advance. Credit
Receipt
claimed on tax return
claimed on tax return.
claimed on tax return.
Repayment
Repayment is limited to cases
Repayment would be
N/A
N/A
protection for where the number of children
limited to cases where
excess
used to estimate the advance
the number of
advance
payments of the 2021 credit
children used to
paymentsd
differs from the number of
estimate the advance
children actually claimed on the
payments of the 2022
2021 return. In these cases, any
credit differs from the
amount the taxpayer would
number of children
otherwise need to repay is
actually claimed on the
reduced by a safe harbor amount.
2022 return. The
The maximum safe harbor amount maximum safe harbor
is $2,000 times this difference in
would be $3,600 times
number of children.
this difference in

number of young
children 0-5 years old,
The safe harbor amount is subject
plus $3,000 times this
to phaseout.
difference in number

of older children 6-17
There is no repayment protection
years old.
for changes in credit amount due

to changes in income and marital
Safe harbor amount
status between the reference year would be subject to
and the applicable return.
phaseout.

There would be no
repayment protection
for changes in credit
amount due to
changes in income and
marital status between
the reference year and
the applicable return.
Would Other
Yes, ARPA changes for 2021 are
Yes, proposed changes Same as 2022
No. Temporary
Temporary
layered on existing temporary
in BBBA for 2022
changes made by P.L.
Modification(s)
changes made by P.L. 115-97.
would be layered on
115-97 are scheduled
to the Child
existing temporary
to expire.
Credit Be in
changes made by P.L.
Effect?
115-97.
Source: CRS analysis of the October 28 text of the Build Back Better Act.
Notes: A child’s age for the purposes of these age limits is based on their age on last day of the year. For the purposes of
advancing the credit, the IRS can use existing data to project the child’s age. Income for most taxpayers is their adjusted
gross income (AGI).

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a. The bil also proposes making changes to the credit for 2021 concerning the applicability of the safe harbor, married
joint filers, and data used to calculate the advance payments.
b. Low-income taxpayers are generally only eligible for the ful amount in 2021 if their principal place of abode is in the
United States or Puerto Rico. This provision permanently extends that requirement to receive a ful y refundable tax
credit.
c. Prior to the expansion of the child credit under ARPA, the ID requirement for qualifying children was temporarily
changed from any taxpayer ID to a work-authorized SSN for 2018-2025. Hence, under current law, absent any changes
under BBBA, the taxpayer ID requirement for qualifying children is scheduled to be any taxpayer ID beginning in 2026.
d. Excess advance payments are equal to the value of the credit a taxpayer is eligible to claim on their tax return minus
amounts received as advance payments.

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Author Information

Margot L. Crandall-Hollick

Specialist in Public Finance

Disclaimer

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This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff
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