Taxpayers who received advanced payments of their expected 2021 Child Tax Credit will need to reconcile the advance payment amounts on their 2021 tax return. In January, 2022 taxpayers received IRS Letter 6419 providing the total amount of advance Child Tax Credit payments that were disbursed to them.
If the taxpayer received advance child tax credit payments in excess of their 2021 calculated child tax credit amount, they may have to repay some or all of the excess amount.
Full Repayment Relief - Taxpayers will not be required to pay back any excess child tax credit amounts if their AGI is at or below:
- $60,000 for Married Filing Joint or qualifying widow(er) filing status
- $50,000 for Head of Household filing status
- $40,000 for Single or Married Filing Separately filing status
Partial Repayment Relief - Taxpayers will be required to pay back part of the excess child tax credit amounts if their AGI is between:
- $60,001 to $119,999 for Married Filing Joint or qualifying widow(er) filing status
- $50,001 to $99,999 for Head of Household filing status
- $40,001 to $79,999 for Single or Married Filing Separately filing status
No Repayment Relief - Taxpayers will be required to pay back all of the excess child tax credit amounts if their AGI is at or over:
- $120,000 for Married Filing Joint or qualifying widow(er) filing status
- $100,000 for Head of Household filing status
- $80,000 for Single or Married Filing Separately filing status
The repayment calculation takes place on Schedule 8812, page 3, Part III.
Additional Information: