![]() ![]() These payments are an advance of your 2021 Child Tax Credit. Eligible families will receive advance payments, either by direct deposit or check. Normally, the IRS will calculate the payment amount based on your 2020 tax return. Most families do not need to do anything to get their advance payment. The expanded and newly-advanceable Child Tax Credit was authorized by the American Rescue Plan Act, enacted in March of 2021. For 2021 only: Stimulus impact on the Child Tax Credit and on the Additional Child Tax Credit for 2021 Advance Child Tax Credit Payments TurboTax will ask you a few simple questions about your dependents and income, calculate your credit, and fill in all of the right forms for you. If you use TurboTax to prepare your tax return, you don’t need to fill out any worksheets or worry about which forms to use. ![]() If you qualify, the worksheet will direct you to fill out Schedule 8812 to claim the Additional Child Tax Credit. To determine whether you’re eligible to claim the Additional Child Tax Credit, you can fill out the Child Tax Credit Worksheet included in the Form 1040 instructions. This means you get a check for the remaining Child Tax Credit (up to $1,500 per child) after your tax bill is reduced to zero. However, you may be able to claim the Additional Child Tax Credit, which allows you to receive up to $1,500 of the $2,000 Child Tax Credit per child as a refund for 2022. If your available Child Tax Credit is greater than your tax liability, the Child Tax Credit can only reduce your tax bill to zero - you don’t get any unused portion of the credit back as a refund. Like other tax credits, the Child Tax Credit is a dollar-for-dollar reduction in your tax. The child doesn’t file a joint return with anyone else, unless the only reason they file a return is to claim a refund of taxes withheld or estimated taxes paid.The child lived with you for more than half of the year.The child doesn’t provide more than half of their own support.The child is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, grandchild, niece, or nephew.The child is younger than age 17 at the end of the tax year.The Child Tax Credit is worth up to $2,000 for each child who meets the following requirements: Understanding the Additional Child Tax Credit begins with the standard Child Tax Credit (CTC). Fortunately, the Additional Child Tax Credit (ACTC) gives parents a chance not only to lower their tax bill to help offset these costs, but also to potentially put more money back in their pockets. ![]() ![]() Department of Agriculture, it costs roughly $233,000 to cover food, housing, transportation, health care, clothing, child care, education, and everything else a child needs to thrive from birth through age 17. If you qualify, complete Schedule 8812 to claim the Additional Child Tax Credit.
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