The Last 2021 Child Tax Credit (CTC) Payment has Been Made to Families. What Can You Do if You Missed Out?

American families will soon receive their final advance Child Tax Credit (CTC) payment for the month of December. Eligible families who did not receive advance payments can claim the Child Tax Credit on their 2021 federal tax return to receive missed payments and the other half of the credit.

This final batch of advance monthly payments for 2021, totaling about $16 billion, will reach more than 36 million families across the country. Most payments are being made by direct deposit.

Eligible families who did not receive any advance Child Tax Credit payments can claim the full amount of the Child Tax Credit on their 2021 federal tax return, filed in 2022. This includes families who don’t normally need to file a return.

Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return.

To help taxpayers reconcile the advance payments, the IRS will send Letter 6419 in January 2022 with the total amount of advance Child Tax Credit payments taxpayers received in 2021 and the number of qualifying children used to calculate the advance payments. People should keep this and any other IRS letters about advance Child Tax Credit payments with their tax records.

See Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return for more information.

Links to online tools, answers to frequently asked questions and other helpful resources are available on the IRS’s special advance CTC 2021 page.

The 2021 Child Tax Credit is a curveball that many taxpayers are not equipped to deal with when they file their taxes. Whether you did or did not receive advance payments, you may be surprised at how much this credit can impact your tax liability. Please give us a call to discuss your family’s unique tax situation.

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