The short answer is, yes. If you received advance CTC payments in 2021, the amounts paid were estimates based upon your most current tax filing (from either your 2020 or 2019 return). Taxpayers will reconcile the Child Tax Credit Advance Payments to the total allowable CTC determined using schedule 8812 on their 2021 return. The net allowable credit equals the total allowable credit less the total of the 2021 advance payments. If the difference is greater than zero, the net CTC is offset against the tax liability and is refundable to the extent it exceeds tax liability. If the difference is less than zero, then the net CTC is considered zero and the excess advance payments may need to be repaid as additional tax.
Welcome to tax season 2024! CPA tax preparers see the IRS budgeting to remain mobile and adaptable this year.
The IRS collected a single-year record of $4.9 trillion of total tax revenue from return filings in fiscal year 2022, the Treasury Inspector