How to report the Advanced Child Tax Credit when filing 2021 Tax Return?
Advance Child Tax Credit payments are early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax return during the 2022 tax filing season.
If the IRS processed your 2020 tax return or 2019 tax return before the end of June,
these monthly payments began in July and continued through December 2021, based on the information contained in that return.
Collect all documents before preparing a tax return. Collect W-2s, Form 1099s and other income-related statements.
People who need to reconcile advance child tax credit payments or claim the recovery rebate credit will need additional information when they file.
Individuals must have the total amounts of advance child tax credit payments to receive the remainder of their child tax credit and the amounts of their third Economic Impact Payment to claim a Recovery Rebate Credit.
Taxpayers should check their online account or review Letter 6419, 2021 Total Advance Child Tax Credit Payments, and Letter 6475, Your 2021 Economic Impact Payment, for their total payment amounts
to help them file an accurate return.
If married taxpayers received payments based on a joint return, each spouse received half of the payments. Each spouse can find their payment total in their own online account or letter. They should add the payments together to provide the total amount.