Reconciling advance Child Tax Credit payments might apply to you in the following situations:
- Received Advance Payments and Eligible for the Credit: If you received one or more advance Child Tax Credit payments during 2021 and can properly claim the 2021 Child Tax Credit, you need to reconcile these payments on your 2021 tax return.
- Received Advance Payments but Not Eligible for the Credit: If you received one or more advance Child Tax Credit payments during 2021 but are not eligible to claim the 2021 Child Tax Credit, you must reconcile these payments. This situation may require you to repay some or all of the advance payments received.
- Did Not Receive Advance Payments but Eligible for the Credit: If you did not receive any advance Child Tax Credit payments during 2021 but can properly claim the 2021 Child Tax Credit, you will need to reconcile this on your 2021 tax return to claim the remaining amount of the credit.
In summary, reconciling advance Child Tax Credit payments applies to you if you fall into any of the above categories, ensuring that the total amount of advance payments received is accurately compared with the amount of Child Tax Credit you are eligible to claim on your 2021 tax return.
Sources:
Rev. Proc. 2022-12
Publication 5534-B (06/2021)
Publication 971 (12/2021)
