There might not be planned advance child tax credit payments for 2022, but there’s still more money coming.
Even though the advance child tax credit payments ended back in December, there’s more money on the way from the expanded child tax credit for parents to get with their 2021 tax refunds.
The remaining half of the expanded amount for 2021 will be available to parents when they file their returns this year. Recently, the IRS announced that tax season will start on Jan. 24.
It would be helpful to see if you’ve received Letter 6419. This is an important document to hold onto. It holds details about your upcoming money that you’ll need for your taxes. If you haven’t received the document yet, look out for it in the mail. The IRS said they began sending out Letter 6419 to families in late December. They will continue sending them out through January.
Once you file your taxes, you’ll claim any child tax credit money you didn’t receive in the previous year. Half or more of the money if you opted out of advance child tax credit payments or had a new baby later in 2021. The IRS letter will inform you how much money you received in 2021. They will also let you know the number of qualifying dependents used to calculate the payments.
If you and your family are eligible and you received each payment between July and December last year, you can expect to get up to $1,800 for each child age 5 and younger. Or, you’ll get up to $1,500 for each child between the ages of 6 and 17, when you file your 2021 taxes. There isn’t a limit on the number of children who can possibly get expanded child tax credit.
How to Get Your Child Tax Credit Money If You Had a Newborn or Adopted Since Last Filing Your Taxes
If you had or adopted a baby by the end of December, you will be eligible for up to $3,600 for that child once they file your taxes. That includes back pay for the July through December advance payments and the funds coming with their refund. Sounds pretty good, right?
You should get the money when they claim your child on their tax return. This will let the IRS know of the person’s household changes.
Will Advance Payments Affect Your Taxes This Year?
Short answer, yes. But let’s explain that a little more. If you received an overpayment and the IRS didn’t adjust the amount on later payments, then you’ll have to pay this back.
You received payments you didn’t qualify for, the IRS won’t just let you keep that.
If your income changed, and you didn’t report it to the IRS, this could result in a larger or smaller tax refund or you owing the IRS money. It all depends on if your income was higher or lower than what the IRS used to figure out your payment.
Say you opted out of the payments last year, your payout will end up being bigger this year.
If you received money for a child who turned 18 last year, you may have to give it back.
