Question

Income change

Forum|Forum|4 years ago
July 21, 2021
1 reply
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Hello, so I know the Child Dependent Tax Credit is based of of the previous tax season. With my current situation I haven’t worked this year & I have started receiving the monthly payment for the tax credit… will I be able to claim the rest of the credit during tax season if I have no income throughout the year? Or how does that work?

C

conniem123

Sorry to hear about your work situation. The advance Child Tax Credit payments you are receiving will be equal to half of the credit if you receive all six payments between July - December. If you are eligible for the full Child Tax Credit on your 2021 tax return, you will receive the remaining credit at the time you file your 2021 tax return.

When you file your 2021 tax return during the 2022 tax filing season, you will need to compare:

The total amount of the advance Child Tax Credit payments that you received during 2021; with
The amount of the Child Tax Credit that you can properly claim on your 2021 tax return.

Excess Child Tax Credit Amount: If the amount of your Child Tax Credit exceeds the total amount of your advance Child Tax Credit payments, you can claim the remaining amount of your Child Tax Credit on your 2021 tax return.

In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.

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