Is the ctc repayment plan automatic If someone qualifies while filing? Or is it determined after filing and IRS reviews completed tax return?

The calculations for the CTC plans are calculated by TurboTax.  However,  the filing of your tax return will make it official.

• Taxpayers will receive Letter 6419 from the IRS confirming the amounts of the advance payments received 

  • MFJ filers will receive two Letters 6419 

  • Taxpayers should refrain from filing until the letter has been received and the amounts confirmed 

• There are circumstances under which some taxpayers may have to repay excess advance child tax credit payments 

  • Shared-custody arrangements, when a taxpayer with a qualifying child on the 2020 return is not claiming a child on the 2021 return but receives the advance credit payments.  

  • Advance payments received based on income from a 2020 return that was lower than the taxpayer received in 2021 resulting in a reduced CTC 

• 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 on your tax return 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.

Excess Advance Child Tax Credit Payment Amount: If you received a total amount of advance Child Tax Credit payments that exceed the amount of Child Tax Credit as calculated on your 2021 tax return, you may need to repay the IRS a portion, or all of that excess payment.