IRS Updates Child Tax Credit (CTC) and Advance CTC Payments FAQs
IRS has released a CTC and Advance CTC Payments Fact Sheet with newly updated FAQs to assist taxpayers and tax pros with preparing 2021 federal tax returns.
IRS sent taxpayers Letter 6419 in January, to provide the total amount of advance CTC payments they received in 2021. Remind your clients to keep these letters to assist them in preparing their 2021 returns. Recipients of advance CTC payments will need to compare the amount of payments received during 2021 with the amount of the CTC that can be claimed on their 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.
The FAQ topics address calculation of the CTC and advance CTC payments, verifying your identity, reconciling payments, returning payments, and much more. Get the full list of topics here