The Internal Revenue Service today updated frequently-asked-questions (FAQs) for the 2021 Child Tax Credit and Advance Child Tax Credit to help eligible families properly claim the credit when they prepare and file their 2021 tax returns.
This extensive FAQ update (FS-2022-03) PDF includes multiple streamlined questions for use by taxpayers and tax professionals and is being issued as expeditiously as possible.
The updates can be found in:
- Topic A: General Information
- Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit
- Topic C: Calculation of the 2021 Child Tax Credit
- Topic D: Calculation of Advance Child Tax Credit Payments
- Topic E: Advance Payment Process of the Child Tax Credit
- Topic F: Updating Your Child Tax Credit Information During 2021
- Topic G: Receiving Advance Child Tax Credit Payments
- Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return
- Topic I: U.S. Territory Residents and Advance Child Tax Credit Payments
- Topic J: Unenrolling from Advance Payments
- Topic K: Verifying Your Identity to View your Payments
- Topic L: Commonly Asked Shared-Custody Questions
- Topic M: Commonly Asked Immigration-Related Questions
- Topic N: Returning a Payment
Recipients of advance Child Tax Credit payments will need to compare the amount of payments received during 2021 with the amount of the Child Tax Credit that can be claimed on their 2021 tax return.
Those that received less than the amount they are eligible for can claim a credit for the remaining amount. Those that received more than they are eligible for may need to repay some or all of the excess amount.
The IRS will send Letter 6419 in January of 2022 to provide the total amount of advance Child Tax Credit payments that were received in 2021. The IRS urges taxpayers that receive these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.