Last year, millions of eligible families received six monthly payments worth up to $300 as part of the 2021 expanded child tax credit. While those payments are no longer being made, parents can still expect a larger tax refund this year.
When you file your 2021 taxes, if you and your family meet the income qualifying standards and received each advance payment between July and December 2021, you can expect to receive up to $1,800 for each child age 5 and under, or up to $1,500 for each child age 6 to 17.
The number of children eligible for the expanded child tax credit is not limited, but the amount of credit you receive is affected by your income level. The credit begins to dwindle after $75,000 in income for single taxpayers and $150,000 for married filers filing jointly. It totally fades out at $220,000 and $440,000, respectively.
If you opted out of partial payments before the first check was sent, you'll receive your full qualifying amount with your tax refund - up to $3,600 for children under the age of six and $3,000 for children aged six to seventeen. Any payments you missed because of IRS issues or because you dropped your enrollment should be reflected in your 2021 tax refund.
In late December, the IRS began sending Letter 6419 to families. Keep a check on your mailbox if you haven't gotten it yet, as some letters are still in transit.
That letter contains critical information regarding your child tax credit payments that you should double-check for correctness, such as the number of dependents used to calculate the amount you receive.
Don't be concerned if you don't receive or misplace the letter. With an online IRS account, you can access all of the crucial information you need for your 2021 tax return on the IRS website. To check your advance child tax credit payments and the number of qualified children for 2021, simply log in and click "View my tax records."
In fact, due to some reporting inaccuracies in Letter 6419, the IRS recommends that you double-check your information on the IRS website. The IRS insists on the accuracy and timeliness of the information in your online account.
If you had a baby or adopted one by the end of December, you'll be able to claim up to $3,600 in tax credit 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.
You should receive that money when you claim your child on your tax return, which will notify the IRS of any changes in your family.
