Reconciling the Advance Child Tax Credit
By: Tax Hotline
Winter 2022 (Vol. 39, No. 4)
Q: How do I reconcile my Advance Child Tax Credit payments and my Child Tax Credit on my 2021 tax return?
A: You should have received Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. (Be sure to keep this letter regarding your advance Child Tax Credit payments with your tax records) When you file your 2021 tax return you will need to compare the total amount of the advance Child Tax Credit payments that you received during 2021; with the amount of the Child Tax Credit that you can properly claim on your 2021 tax return.
If the amount of your Child Tax Credit exceeds the total amount of your advance Child Tax Credit payments, you can claim the remaining amount of your Child Tax Credit on your 2021 tax return.
However, if you received a total amount of advance Child Tax Credit payments that exceeds the amount of Child Tax Credit that you can properly claim on your 2021 tax year, you may need to repay to the IRS some or all of that excess payment.
You qualify for full repayment protection and won’t need to repay any excess amount of your advance Child Tax Credit payments if your main home was in the United States for more than half of 2021 and your modified adjusted gross income (AGI) for 2021 is at or below the following amount based on the filing status on your 2021 tax return:
- $60,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
- $50,000 if you are filing as head of household; and
- $40,000 if you are a single filer or are married and filing a separate return.
Your repayment protection may be limited if your modified AGI exceeds these amounts or your main home was not in the United States for more than half of 2021.