To reconcile your advance Child Tax Credit (CTC) payments with the amount of CTC you can properly claim when filing your 2021 tax return, you need to follow these steps:
- Complete Schedule 8812 (Form 1040): This form is essential for reconciling the advance CTC payments. It will help you determine if you are eligible for any additional CTC or if you need to repay any excess advance payments received.
- Attach Schedule 8812 to Your Tax Return: Once you have completed Schedule 8812, you must attach it to your Form 1040 when filing your tax return.
- Provide Required Information: On Schedule 8812, you will need to provide detailed information about:
- Your qualifying children.
- Your income.
- The advance CTC payments you received.
- Calculate the Proper Amount of CTC: Based on the information provided, Schedule 8812 will calculate the amount of CTC you can properly claim for the year. This includes determining if you are eligible for any additional CTC or if you need to repay any excess advance payments.
- Check the “Child Tax Credit” Box: For each qualifying child for whom you are claiming the CTC, ensure you check the “Child tax credit” box in column (4) of the Dependents section on page 1 of Form 1040.
- Review Eligibility Criteria: Ensure that each child meets the qualifying criteria for the CTC, which includes being your dependent, under age 17 at the end of the year, and meeting other specific conditions outlined in the IRS instructions.
By following these steps, you will be able to reconcile your advance CTC payments with the amount of CTC you are eligible to claim on your 2021 tax return.
Sources:
Instructions for Form 2210 (2023)
Instructions for Form 1040-C (01/2024)
1040 (2023)
2023 Instructions for Schedule 8812 (2023)
Instructions for Form 1040-SS (2023)
Instructions for Form 1045 (2023)
Instructions for Form 8862 (12/2023)
