Child Tax Credit Advance Payments Explained: Why Monthly Payments Ended and What Replaced Them

There are no Child Tax Credit advance monthly payments for the 2025 tax year or any future year. The expanded advance CTC program that sent monthly checks to families in 2021 expired at the end of that year and was never renewed. Under the One Big Beautiful Bill Act (OBBB), signed July 4, 2025, the Child Tax Credit was increased to $2,200 per qualifying child, but the law explicitly does not authorize advance payments. You claim the entire credit as a lump sum when you file your Form 1040.

If you’re waiting for monthly CTC deposits, they are not coming. The IRS CTC Update Portal that families used in 2021 to manage advance payments is no longer active. For the 2025 tax year (filed in 2026), the Child Tax Credit is claimed on Schedule 8812 attached to your return, with a maximum refundable portion (Additional Child Tax Credit) of $1,700 per child.

Confused About the Child Tax Credit Changes?

Greenback helps expat families determine what they can still claim and how to recover any missed credits.

Here’s what changed under the OBBB, what the credit is worth now, and what expat families need to know about claiming it.

What Happened to Advance CTC Payments?

In 2021, the American Rescue Plan temporarily expanded the Child Tax Credit and authorized the IRS to distribute up to half the credit in monthly advance payments from July through December. Eligible families received up to $300 per child under 6 and $250 per child ages 6 to 17 each month.

That program expired on December 31, 2021. Congress did not extend it in 2022, 2023, 2024, or 2025, and the OBBB does not include any provision for advance payments.

Feature	2021 (American Rescue Plan)	2025 (OBBB)
Maximum credit per child	$3,600 (under 6) / $3,000 (ages 6-17)	$2,200 (all children under 17)
Advance monthly payments	Yes (July-Dec 2021)	No
Fully refundable	Yes	No (refundable portion capped at $1,700)
Age limit	Under 18	Under 17
Income phase-out	Began at $75,000 single / $150,000 joint (for expanded amount)	Begins at $200,000 single / $400,000 joint
SSN requirement	Child only	Child AND at least one parent

What Is the Child Tax Credit Worth Now?

Under the OBBB, effective for the 2025 tax year:

Maximum credit: $2,200 per qualifying child (up from $2,000)
Refundable portion (ACTC): Up to $1,700 per child (requires earned income of at least $2,500)
Non-refundable portion: Reduces your tax liability dollar-for-dollar
Phase-out thresholds: $200,000 for single filers / $400,000 for married filing jointly
Inflation indexing: The full credit amount will be adjusted for inflation starting in 2026
SSN requirement: Both the child and the taxpayer claiming the credit (or at least one spouse on a joint return) must have a Social Security Number valid for employment. ITIN holders can no longer claim the CTC.

The credit is claimed entirely on your tax return. There is no separate application, no monthly distribution, and no advance payment portal.

How Does This Affect U.S. Expats?

The interaction between the Child Tax Credit and expat tax strategies is one of the most important planning decisions for American families abroad.

The FEIE Trap

If you use the Foreign Earned Income Exclusion (FEIE) to exclude your foreign income, you cannot claim the refundable Additional Child Tax Credit (ACTC). The IRS prohibits claiming the ACTC when filing Form 2555. This means:

You may still use the non-refundable CTC to reduce any remaining tax to $0
But if your tax is already $0 after the FEIE, the non-refundable portion provides no benefit
And you cannot receive the $1,700 per child refundable portion

The FTC Alternative

If you use the Foreign Tax Credit (FTC) instead of the FEIE, your foreign income remains on your return. This preserves eligibility for the refundable ACTC. In many cases, the FTC still reduces your U.S. tax to $0, while also unlocking up to $1,700 per child in refundable credits.

Example: Rachel and David live in Germany with two children. They earn $120,000 combined and pay $28,000 in German taxes.

Strategy	U.S. Tax Owed	CTC Benefit	Cash Refund
FEIE (Form 2555)	$0	Non-refundable only (no benefit since tax is already $0)	$0
FTC (Form 1116)	$0 (German taxes exceed U.S. liability)	Full CTC + refundable ACTC	Up to $3,400 ($1,700 x 2 children)

For a detailed comparison of which strategy works best for your family, see our FEIE vs. FTC guide.

The New SSN Requirement

Starting with the 2025 tax year, the OBBB requires that both the qualifying child and the parent claiming the credit have a Social Security Number valid for employment. Previously, only the child needed an SSN. This change affects:

Expat families where one parent has an ITIN instead of an SSN
Mixed-citizenship couples where the non-U.S. spouse files jointly using an ITIN

On a joint return, only one spouse needs an SSN. If your non-U.S. citizen spouse has an ITIN and you (the U.S. citizen) have an SSN, you can still claim the CTC.

Will Advance Payments Ever Come Back?

There is no current legislation to reinstate advance monthly CTC payments. The OBBB made the $2,200 credit permanent (with inflation indexing starting in 2026) but did not include any advance payment mechanism. Any future reinstatement would require new legislation.

Frequently Asked Questions

Will I receive monthly Child Tax Credit payments in 2026?

No. There are no advance CTC payments for 2025 or any future year under current law. You claim the full credit when you file your tax return.

How much is the Child Tax Credit for 2025?

$2,200 per qualifying child under 17. The refundable portion (ACTC) is capped at $1,700 per child and requires at least $2,500 in earned income.

Can expats claim the Child Tax Credit?

Yes, but your tax strategy matters. If you use the FEIE, you lose access to the refundable ACTC. If you use the FTC, you preserve full eligibility. See our Child Tax Credit guide for expats for a complete analysis.

What if my spouse has an ITIN rather than an SSN?

On a joint return, only one spouse needs an SSN to claim the CTC. If you (the U.S. citizen) have an SSN and your child has an SSN, you can still claim the credit even if your spouse files with an ITIN.

What happened to the IRS CTC Update Portal?

The portal was created specifically for the 2021 advance payment program. It is no longer active and cannot be used to manage CTC claims. You claim the credit on Schedule 8812 when you file your return.

Will the credit amount increase in 2026?

The $2,200 base amount will remain at $2,200 for 2026. The OBBB introduced permanent inflation indexing, but the first adjustment is expected in a future year. The refundable portion stays at $1,700 for 2026.

At Greenback, we help expat families determine whether the FEIE or FTC produces the best result when the Child Tax Credit is factored in. For families with two or more children, the difference between strategies can be worth thousands of dollars in refundable credits.

If you’re ready to be matched with a Greenback accountant, click the get started button below. For general questions on the Child Tax Credit for expat families or working with Greenback, contact our Customer Champions.

Don’t Miss Out on Family Tax Benefits

Greenback helps you apply Child Tax Credit rules correctly and stay compliant with U.S. tax laws.

This article is for informational purposes only and should not be considered tax advice. Child Tax Credit rules changed significantly under the One Big Beautiful Bill Act (OBBB). For the latest IRS guidance, see the IRS Child Tax Credit page and Schedule 8812 instructions. Always consult with a qualified tax professional regarding your specific situation.