By Dawn Allcot
See: Stimulus Update: How To Request an IRS Trace for Lost Child Tax Credit Payment Find: Stimulus Update: What COVID-Era Programs Will Continue in 2022?
As of the 2022 tax season, the CTC is not taxable. However, parents must reconcile the amount they received with the amount they were supposed to receive based on their 2021 adjusted gross income.
- The child tax credits are not taxable and are not reported as income on your 2021 tax return.
- You must reconcile your advance payments with the amount of the credit your are eligible to receive on your 2021 income tax return — or your tax return processing could be delayed.
- The IRS contacted recipients of the advance CTC in June 2021, before they were disbursed.
- Payments were distributed monthly between July 15, 2021 and Dec. 2021.
- The IRS sent, or is sending, Letter 6419 to let taxpayers know the total amount of advance CTC payments made throughout 2021.
- Advance child tax credit payments are not counted as income and will not affect eligibility for government benefits or assistance.
Learn: Child Tax Credit: I Received Money, But Don’t Usually Submit a Return — Do I Need to File Taxes This Year? Explore: Tax Surprise! If You Received COVID Benefits, You Could See No Refund — or Even a Bill
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