The IRS has issued an updated FAQ document on the expanded Child Tax Credit covering adjusted gross income, the first phaseout and more.
The IRS noted that 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.
These FAQs are especially timely as the IRS has informed taxpayers that some who have received the Child Tax Care credit will need to repay that money if they earned too much income last year.
The IRS sent Letter 6419 this month to provide the total amount of advance Child Tax Credit payments that were received in 2021. The IRS is encouraging taxpayers who received these letters to make sure they hold onto them to help them prepare their 2021 federal tax returns in 2022.