01/14/2022
Advanced Child Tax Credit FAQ - Please visit my website or www.irs.gov
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• Q H3. Will I need to repay advance Child Tax Credit payment back to the IRS if they were greater than the Child tax Credit amount that I am allowed on my 2021 tax return (updated January 11 2022)
• A3 Maybe. If you qualify for the repayment protection described in this Topic H, you will be excused from repaying some or all of the excess amount. If you do not qualify for repayment protection, you will need to report the entire excess amount on your 2021 tax return as additional income tax. This additional income tax will reduce the amount of your tax refund or increase your total tax due for 2021.
• How do I know if I don’t qualify for the repayment protection for filers based on their income during 2021? (added June 14th 2022)
• A4. You won’t qualify for any repayment protection if your modified adjusted gross income (AGI) is at
1. $120,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
2. $100,000 if you are filing as head of household; and
3. $80,000 if you are a single filer or are married and filing a separate return.
For information on the definition of modified AGI, see Topic C: Calculation of the 2021 Child Tax Credit.
• Q H5. How do I know if I qualify for full repayment protection for the filers based on income during 2021?(added June 14, 2021)
A5. 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.
For more on the definition of your main home, see Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit. For information on the definition of modified AGI, see Topic C: Calculation of the 2021 Child Tax Credit.
• Q H6. If I qualify for repayment protection, how much repayment relief will I qualify for? (added June 14, 2021)
A6. If you qualify for repayment protection, the amount of your tax liability from excess advance Child Tax Credit payments is reduced by up to the full repayment protection amount. The full repayment protection amount equals $2,000, multiplied by the following:
• The number of qualifying children that the IRS took into account in determining the IRS’s initial estimate of your advance Child Tax Credit payments, minus
• The number of qualifying children properly taken into account in determining the allowed Child Tax Credit amount on your 2021 tax return.
Example: You properly claimed three qualifying children on your 2020 tax return, but claim only one qualifying child on your 2021 tax return. You can receive up to $4,000 in repayment protection (that is, $2,000 for each excess qualifying child) if you qualify.
You will be able to apply the full repayment protection amount of $2,000 for each excess qualifying child if your modified adjusted gross income (AGI) is at or below the following amounts 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 you are married and filing a separate return.
For information on the definition of modified AGI, see Topic C: Calculation of the 2021 Child Tax Credit.
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