Updated 2021 Child Tax Credit and Advance Child Tax Credit FAQs
IRS has published updated FAQs for the 2021 Child Tax Credit and Advance Child Tax Credit
to help eligible families claim the credit when they file their 2021 tax return. This extensive update includes multiple streamlined questions for use by taxpayers and tax professionals.
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 who received less than the amount they are eligible for can claim a credit for the remaining amount. Those who received more than they are eligible for may need to repay some or all of the excess amount.
IRS will send Letter 6419 in January 2022 to provide the total amount of advance Child Tax Credit payments that were received in 2021. IRS urges taxpayers to keep these letters in order to assist in preparing their 2021 federal tax returns. Read the news release here