How To Get Expanded Child Tax Credit

Parents can still avail of the remaining half of the expanded child tax credit for 2021 when they file tax returns in 2022.

According to IRS, the tax season is starting from January 24. Parents are advised to keep Letter 6419, received from IRS, as it contains detailed information about their child’s tax credit and will help pay taxes.

While filing taxes, parents will be able to claim child tax credit they didn’t receive last year, at least half, or more if they opted out of advance child tax credit payments or were blessed with a baby or adopted one late in 2021.

Letter 6416 will contain details about how much money you received last year and the number of dependents which were used to calculate payments.

Letter 6419

According to IRS, Letter 6419 was despatched to families in late December 2021 and will continue to be despatched through January 2022. It is an important document as it would be needed when you file your taxes. The letter contains information about child tax credit payments and it needs to be checked for accuracy for details like the number of dependents used to calculate the money you will get.

Child tax credit money you are eligible for  

If you received each payment between July and December 2021 and meet income eligibility requirements, expect to receive up to $1,800 per kid up to age of 5 and up to $1,500 for children in age group of 6-17, when filing for 2021 taxes. Under the expanded child tax credit, there is no limit on number of children.

If you had decided to opt out of receiving payment before the first check was issued, a full amount for which you qualify, will be issued in one go – up to $3,600 for every child in the 0-5 age bracket and $3,000 per kid in the 6-17 age group.

Payments you missed because of unenrolling and errors on part of the IRS will be part of a tax refund.

If you didn’t get one or more child tax credit payments in 2021?

If you missed a check due to outdated information or an IRS error, you can file a payment trace with the IRS or wait for the issue’s resolution when you file taxes.

However, if you had a baby/dependent since the last time you filed taxes, that information won’t be on the IRS database. So, until you file your taxes, you won’t get any money.

How do child tax credit payments affect taxes?

Here’s how child tax credit payments you got this year could potentially affect your taxes:

  1. IRS made an overpayment and it didn’t adjust the amount in later payments. You will have to pay it back.
  2. You get a payment you weren’t eligible for. You will have to return it to IRS.
  3. There was a change in your income but you didn’t report it to IRS. In this case, you could get a smaller or larger refund or deposit money with the IRS, depending on what criteria the IRS adopted to calculate your payment based on your income being higher or lower.
  4. If you opt out of payments in 2021, you will get a larger payout this year.
  5. If you received money for a child who turned 18 in 2021, you will have to pay it back.

If you had a newborn/adopted since last filing of your taxes

Parents will be eligible for up to $3,600 when they file their taxes if they had a baby or adopted one by end of December. The amount includes back pay from July to December advance payments, with the bulk amount coming with the refund.

The money can be had when parents claim the child on tax return, which will inform the IRS about the change in the household.