Skip to main content

Site Navigation

Site Search

global Tax

IRS Makes Further Updates to Child Tax Credit FAQs

March 31, 2022

Attention families…you’ll want to read up on new information regarding your child tax credit payments. We have the details here.

Parents…the IRS has released new details about the refundable child tax credit…are you up to speed? Here’s what you need to know.

What is the child tax credit?

Check out our blog, Are You Eligible for Advanced Child Tax Credit Payments in 2021? for the details, but essentially, if you have children under age 17 at the end of a calendar year, you are eligible for a tax credit of up to $3,000 per dependent child on your return (increased from $2,000), or $3,600 for a child under age 6.

What’s new in March 2022?

Q B3. Who is a “qualifying child” for purposes of the 2021 Child Tax Credit?

The updated FAQ clarifies that, for tax year 2021, a qualifying child is an individual who:

  1. Does not turn 18 before January 1, 2022.
  2. Is the taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew).
  3. Did not provide more than half of his or her own support during 2021.
  4. Lives with the taxpayer for more than one-half of tax year 2021.
  5. Is claimed as the taxpayer’s dependent.
  6. Did not file a joint return with his or her spouse for tax year 2021 or filed it only to claim a refund of withheld income tax or estimated tax paid.
  7. Is a U.S. citizen, U.S. national, or U.S. resident alien.

Q C1. What is the amount of the Child Tax Credit for 2021?

A1. The Child Tax Credit increased for tax year 2021, from $2,000 per qualifying child to:

  • $3,600 for children ages 5 and under at the end of 2021; and
  • $3,000 for children ages 6 through 17 at the end of 2021.
  • The nonrefundable credit for other dependents remains $500.

Q D1. How were my advance Child Tax Credit payment amounts determined?

A1. The IRS estimated the amount of the Child Tax Credit that you will be eligible to claim on your 2021 tax return during the 2022 tax filing season, based on information you reported (especially info entered in the child tax credit non-filer tool) on your processed 2020 tax return.

If the IRS did not have a processed return for 2020, they used your 2019 return to estimate your advance child tax credit payment amount.

If the IRS did process your 2020 return, they recalculated your advance Child Tax Credit payments and adjusted any remaining monthly payments.

The IRS began disbursing advance Child Tax Credit payments in July and continued on a monthly basis through December 2021.

Are you eligible for the credit but did not receive advance payments? You can claim the full credit amount when you file your 2021 tax return during the 2022 tax filing season.

Be aware-- Advance Child Tax Credit payment amounts do not include the non-refundable $500 Credit for Other Dependents.

Questions? Contact us.

Stay informed. Get all the latest news delivered straight to your inbox.

Also in Tax Blog

up arrow Scroll to Top