You might be wondering if the child tax credit will be extended in 2022, or if Congress will ever approve the expanded child tax credit or advance payments. We'll go through the newest developments with the child tax credit and what to expect when it comes time to file your taxes this year.
The IRS said that it began distributing Letter 6419 to households in late December and continued through January. If you haven't already received the letter, keep an eye out for it in your mailbox because you'll need it when you file your taxes this year.
The note contains critical information regarding your child tax credit payments that you should double-check for accuracy, such as the number of dependents used to calculate the amount of money you get.
When you file your 2021 taxes, if you and your family match the income eligibility requirements and received each payment between July and December last year, you can expect to get up to $1,800 for each kid age 5 and under, or up to $1,500 for each child age 6 to 17. The expanded child tax credit has no upper limit on the number of children who are eligible.
If you opted out of receiving payments before the first check was issued, you will get the full amount you are eligible for all at once - up to $3,600 for children under the age of 6 and $3,000 for children aged 6 to 17. Any payments you missed as a result of IRS errors or because you unenrolled should be reflected in your tax refund.
If you had a kid or adopted one by the end of December, you'll be able to claim up to $3,600 in tax credits for that child when you file your taxes. This includes back pay for advance payments made from July to December, as well as the portion of your refund.
When you claim your child on your tax return, the IRS will be notified of your household changes, and you should get that money.
Now that tax season has begun, you'll want to submit your tax return to the IRS as soon as possible to claim the remaining funds from your enhanced child tax credit. While the monthly payments were completed in December, the improved credit will continue to provide additional funds.
If you opted out of advance payments or delivered a new baby later in 2021, any child tax credit money you haven't yet received will be included with your refund when you file your 2021 tax return.
