When the expanded Child Tax Credit ended, many families lost a significant source of monthly cash flow. If you were counting on those payments to cover essentials like groceries, utilities, or rent, the adjustment can feel overwhelming. But here’s the thing: with the right strategy, you can navigate this transition without derailing your financial goals.

Let’s walk through three practical steps to help you manage this change and keep your money moving in the right direction.

1. Rebuild Your Budget Right Now

The first instinct might be to panic, but the real power move is to take action immediately. Your budget was working before the credit arrived—and it can work again.

Cut the extras you don’t need

Start by reviewing your bank and credit card statements from the last few months. Look for subscriptions you’ve forgotten about, streaming services gathering dust, or memberships you’re not using. Even small cuts add up when you’re tightening your belt.

Get creative with everyday costs

With gas prices being what they are, consolidate errands into fewer trips. Batch your grocery shopping, carpool when possible, or swap babysitting with friends and family to share costs.

Find ways to earn more

If your budget is already stretched thin, consider a side gig or a job skills training program. Even a small additional income stream can help bridge the gap while you adjust.

Get professional guidance

There’s no shame in getting help. A free credit counseling session with a financial professional can give you concrete solutions, help you spot opportunities you might’ve missed, and explore options like a debt management plan if needed.

2. Prepare for Tax Season (It Might Surprise You)

Here’s something people often overlook: the expired credit could affect your tax refund, whether you received the payments or not. Let’s break down what might happen:

Scenario 1: You got partial payments but not the full benefit

If you received advance CTC payments in 2021, you only got half the total benefit. When you file your taxes, claim the remaining amount. If you didn’t receive advance payments, you can claim the full credit when you file.

Also worth exploring: the Child and Dependent Care Credit, which could give you an additional credit for qualifying childcare expenses if you have kids under 13.

Scenario 2: The IRS overpaid you

Sometimes the IRS miscalculates—maybe your filing status changed during the year. If this happened, you might owe back some of the benefit. The good news? You can set up a repayment plan or explore settlement options with the IRS instead of paying it all at once.

Scenario 3: You haven’t filed taxes in a while

If you skipped filing in 2019 or 2020, you might’ve missed out on stimulus payments and the child tax credit. Check the IRS’s Non-Filer Sign-up tool to see if you qualify—it could mean money in your pocket.

Pro tip: The IRS website is your best friend here, and they offer free filing help through their VITA program.

3. Don’t Fall for CTC Scams

Scammers love targeting people dealing with tax credits because they know you’re looking for information. Here’s what to watch for:

The IRS will never contact you first via email, text, or social media asking for personal or financial information. If you get an email with suspicious attachments or links claiming to have “special information” about your Child Tax Credit or refund—that’s a red flag.

Stay protected:
– Always reach out to the IRS directly through their official website or verified phone number
– Use strong, unique passwords on all your accounts
– Regularly check your credit reports for suspicious activity

You’ve Got This

The expiration of the Child Tax Credit is real, and the financial impact is valid. But you’re not stuck. By adjusting your budget now, understanding what happens at tax time, and protecting yourself from scams, you’re taking control of your money—not letting circumstances control you.

The goal at Piere is to help your money work smarter for you. Sometimes that means adapting when things change. You’ve already proven you can manage—now you’re just recalibrating. Let your money move you forward.