How much of the Child Tax Credit can I claim on my 2021 tax return

For the 2021 tax year, the amount of the Child Tax Credit (CTC) you can claim depends on several factors, including the age of your qualifying children, your adjusted gross income (AGI), and whether you received advance CTC payments during the year.

1. Credit Amount:
   • For each qualifying child under the age of 6 at the end of 2021, you can claim up to $3,600.
   • For each qualifying child aged 6 to 17 at the end of 2021, you can claim up to $3,000.
2. Qualifying Child:
   • A qualifying child is defined as a child who has not attained the age of 18 at the close of the taxable year and meets the criteria set forth in section 152(c) of the Internal Revenue Code.
3. Income Thresholds:
   • The credit begins to phase out if your modified AGI exceeds certain thresholds:
     • $150,000 for joint filers or surviving spouses.
     • $112,500 for heads of household.
     • $75,000 for all other filers.
4. Advance Payments:
   • If you received advance CTC payments during 2021, these payments generally equaled 50% of the estimated credit amount. You will need to reconcile the advance payments received with the total credit amount you are eligible to claim on your 2021 tax return.
5. Reconciliation:
   • You must compare the total advance CTC payments received in 2021 with the amount of the CTC you are eligible to claim. If the advance payments were less than the total credit amount, you can claim the remaining credit on your tax return. If the advance payments were more than the total credit amount, you may need to repay the excess, subject to certain safe harbor provisions.
6. Identification Requirements:
   • You must provide the Social Security Number (SSN) of each qualifying child on your tax return. The SSN must be valid for employment and issued before the due date of your tax return.
7. Special Rules for 2021:
   • For 2021, the CTC is fully refundable, meaning you can receive the full amount of the credit even if you do not owe any federal income tax.

By considering these factors, you can determine the exact amount of the Child Tax Credit you are eligible to claim on your 2021 tax return.

Sources:
§ 24. Child tax credit
Rev. Proc. 2022-22
Rev. Proc. 2022-12
Rev. Proc. 2021-24
Rev. Proc. 2021-23
Rev. Proc. 2022-38