The IRS has “extensively” updated its FAQs regarding the 2021 Child Tax Credit and Advance Child Tax Credit Payments, the agency announced this week.
The updates are intended to help eligible families properly claim the credit when they prepare and file their 2021 tax return and include multiple streamlined questions for use by taxpayers and tax professionals, according to the IRS.
According to the IRS, 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 that received less than the amount they are eligible for can claim a credit for the remaining amount. Those that received more than they are eligible for may need to repay some or all of the excess amount.
The IRS will send Letter 6419 in January to provide the total amount of advance Child Tax Credit payments that were received in 2021. The IRS urges taxpayers receiving these letters to make sure they hold onto them to assist them in preparing their 2021 federal tax returns in 2022.
The updated 2021 Child Tax Credit and Advance Child Tax Credit FAQs can be accessed on the IRS website.