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As tax filing time arrives, keep in mind how the Child Tax Credit (CTC) may impact your tax return this year.

If you received less than you are eligible for in advance CTC payments, you can claim a credit for the remaining amount. But if you received more than you’re eligible for, you may need to repay some or all the excess payment when you file. Not to worry, as you may be able to reduce your taxable income to qualify for the entire amount you received.

If your 2021 AGI is above the CTC income thresholds, you will need to reduce your taxable income to qualify for the full credit. One way to do that is to contribute to a traditional IRA before the April 15 deadline. The maximum contribution to a traditional IRA in 2021 is $6,000 per person ($7,000 if you’re 50 or older).
The 2021 AGI thresholds for the CTC are:
•
Single or Married Filing Separately: $75,000
•
Head of Household: $112,500
•
Married Filing Jointly: $150,000
Read our blog to learn how the Child Tax Credit may impact your 2021 tax return. We’re here to help you and your family have the most successful tax season possible