This past summer, the IRS began sending out monthly advance payments for half the total of the newly expanded Child Tax Credit. The other half of the Credit will be claimed on your 2021 income tax return.
The full credit for 2021 is:
$3,600 for children 5 and under at the end of 2021, and
$3,000 for children ages 6 through 17 at the end of 2021.
To qualify for the full credit, your adjusted gross income must be less than: $150,000 if filing jointly, $112,500 if filing as head of household, and $75,000 if you file as single or married filing a separate return.
The IRS will send a letter in January 2022 to recipients of the Advance Child Tax Credit payments – SAVE THIS LETTER for your taxes!
If you receive more advance tax credits than you qualify for on your 2021 return, you may have to pay back the excess credits.
Finally, if you have not received any advanced payments and you are eligible for the increased credit on your 2021 tax return, your CPA will claim the credit on the return for you.
Honorine M. Campisi, CPA
