IRS Issues Child Tax Credit 2021 Filing Season FAQs
The IRS recently released 2021 filing season frequently asked questions (FAQs) on the expanded Child Tax Credit (CTC) to assist taxpayers in preparing their tax year 2021 tax returns.
The American Rescue Plan Act (ARPA) expanded the CTC for tax year 2021 only. Recipients of advance CTC payments will need to compare the amount of payments received during 2021 with the amount of the CTC that can be claimed on their 2021 tax return.
Those that received less than the amount they are eligible for can claim a credit for the remaining amount. Those that received more than they are eligible for may need to repay some or all of the excess amount.
These FAQs contain the following topics:
- Topic A: 2021 Child Tax Credit Basics
- Topic B: Eligibility Rules for Claiming the 2021 Child Tax Credit on a 2021 Tax Return
- Topic C: Reconciling Advance Child Tax Credit Payments and Claiming the 2021 Child Tax Credit on Your 2021 Tax Return
- Topic D: Claiming the 2021 Child Tax Credit If You Don't Normally File a Tax Return
- Topic E: Commonly Asked Immigration-Related Questions
Feb. 1 Update
The IRS updated its FAQs for the 2021 CTC and advance CTC payments.
The updated FAQs modify a question and add a new question:
- Question 4, Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return
- Question 10, Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return