How the Build Back Better Calculator works
This tool estimates the Child Tax Credit as proposed under the Build Back Better Act (H.R. 5376), the budget reconciliation bill passed by the U.S. House of Representatives on November 19, 2021. That bill would have extended the temporary Child Tax Credit expansion first enacted by the American Rescue Plan Act for 2021 through the 2022 tax year, including monthly advance payments. The Senate never passed this provision, so it never became law — the credit reverted to its pre-2021 rules. This calculator models the House-passed proposal for reference and comparison, not a live tax filing.
The formula
Under the proposal, the maximum credit is $3,600 per qualifying child under age 6 and $3,000 per qualifying child ages 6 through 17, fully refundable with no earned-income requirement. The credit phases out in two steps based on modified adjusted gross income (MAGI):
- Step 1: the amount above the standard $2,000-per-child level is reduced by $50 for every $1,000 (or part of $1,000) that MAGI exceeds $75,000 (single), $112,500 (head of household), or $150,000 (married filing jointly) — the same thresholds the American Rescue Plan Act used in 2021.
- Step 2: once the credit reaches $2,000 per child, it is reduced further by $50 per $1,000 of MAGI above $200,000 (single/head of household) or $400,000 (married filing jointly) — the thresholds that have applied to the base Child Tax Credit since 2018 — until it reaches zero.
The proposal also called for monthly advance payments, so this calculator divides the annual credit by 12 to show an approximate monthly amount.
Worked example
A married couple filing jointly with $165,000 MAGI, one child under 6, and one child ages 6-17 starts at a maximum credit of $3,600 + $3,000 = $6,600. MAGI exceeds the $150,000 threshold by $15,000, so Step 1 reduces the credit by 15 × $50 = $750, leaving $5,850 per year (about $487.50 per month). Because MAGI is well under the $400,000 Step 2 threshold, no further reduction applies.
What moves the credit most
- MAGI relative to the thresholds: households under $75,000/$112,500/$150,000 MAGI (by filing status) would receive the full $3,600/$3,000 amounts; those in the phase-out band lose $50 per $1,000 of income until the credit reaches $2,000 per child.
- Children's ages: under the proposal, a child under 6 is worth $600 more per year than a child ages 6-17.
- Filing status: the married-filing-jointly Step 1 threshold ($150,000) is double the single threshold ($75,000), so joint filers can earn more before the phase-out begins.
This provision never became law
The Build Back Better Act passed the House but stalled in the Senate and was never enacted in this form. Parts of the broader bill were later reworked into the Inflation Reduction Act of 2022, which did not include the Child Tax Credit extension. For actual 2022 and later tax years, the Child Tax Credit reverted to its pre-2021 structure: up to $2,000 per qualifying child, with a portion refundable as the Additional Child Tax Credit, phased out above $200,000 ($400,000 for joint filers) of MAGI. Use this calculator to understand the proposal that was debated, not to estimate a real tax return — consult current IRS guidance or a tax professional for that.