Tax Refund Could Bring Additional $1,800 To Each Child for the Child Tax Credit

By NATE GARTRELL On Feb 6, 2022

There is still money coming to eligible families in 2022 after December’s advance child tax credit.

Since tax season has arrived, you can expect your tax refund to include the final enhanced child tax credit payment for 2021, as well as any money you didn’t receive in advance.

If you opted out of advance payments, added a new child to your family, or had a significant change in income, your final payment will be at least half of the total child tax credit, CNET reported.

Keeping track of Letter 6419 from the IRS will help you get the rest of your money. You will find out how much you received in 2021 and the number of dependents on whom the calculations are based. You may risk delaying your tax refund if you don’t verify the information on Letter 6419.

Save The Letter You Received From IRS Regarding The Child Tax Credit

As of late December, families began receiving Letter 6419 from the IRS. You may still receive it if you haven’t seen it yet. Just keep an eye out in your mailbox.

If you get that letter, you’ll need to double-check important information regarding your child tax credit payments, like the number of dependents that determine the amount you get.

Do not panic if you do not receive the letter or lose it. With an online IRS account, you can access all of the information you need for your tax return for 2021. You can check your 2021 advance child tax credit payments and number of qualifying children by clicking “View my tax records” once you’ve logged in.

It is recommended that you double-check your information on the IRS website due to some errors in Letter 6419. The IRS insists on the accuracy and timeliness of your account information.

This Year, How Much Money Can You Expect From The Child Tax Credit?

Your family may be eligible for up to $1,800 each for a child who is 5 or younger, and up to $1,500 for a child who is 6 to 17 when you file your taxes in 2021 if you and your family meet the income guidelines.

If you qualify for the expanded child tax credit, you can have as many children as you want, but the amount of credit you receive will depend on your income. Credits start to decrease for singles at $75,000 and for married couples at $150,000. Credits completely disappear at $220,000 and $440,000, respectively.

In the case of parents who opted out of partial payments prior to the first check being sent, they will get their full eligible refund — up to $3,600 per child under 6 and $3,000 per child from 6 to 17. If you missed payments due to IRS errors or because you are unenrolled, your tax refund for 2021 should reflect those payments.

Would You Be Able To Receive A Child Tax Credit Check Even If You Never Received One Or None In 2021?

You can wait for the IRS to resolve the issue when you file your taxes or you can try filling out an IRS payment trace if money is missing from a previous check due to an IRS error or outdated information. Make sure your check hasn’t already been mailed before you do that.

Note that if you gained a dependent since you last filed taxes, the IRS wouldn’t have that information on file. When that happens, you won’t receive any money until your taxes are filed.

Are Your 2021 Tax Refunds Affected By The Advance Payments?

Your child tax credit payments (for better or for worse) could affect your taxes this year. Let’s see how:

The IRS did not adjust the amount on later payments because you received an overpayment. You must repay this amount.
You received payments you didn’t qualify for. You’ll have to pay the IRS back.
Your income changed, and you failed to let the IRS know. Depending on whether your income was higher or lower than what the IRS used to calculate your payment, you might get a bigger or smaller tax refund or you might owe the IRS.
You chose to opt-out of the payments last year, so you will receive a larger payout this year.
The money for an 18-year-old child was paid to you last year. Perhaps you will have to repay it.

You may not necessarily need to pay back advance child tax credit money if you received more than you were entitled to in 2021. It depends on your income level whether you are eligible for “repayment protection.”

How To Claim Your Child Tax Credit Money If You Had a Newborn or Adopted Since Last Filing Taxes

You can claim up to $3,600 for a child you had or adopted by the end of December when you file your tax return. This includes back pay for the advance payments made in July through December as well as the portion coming with your refund.

If you claim your child on your tax return, the IRS will be notified of the changes in your household.

How Will The Enhanced Child Tax Credit Checks in 2022 Work?

In the absence of a vote to extend the enhanced child tax credit, the enhanced monthly checks are set to revert back to the original amount. When the House of Representatives ratified the Build Back Better bill in November, it extended an increase in the child tax credit and advance payments. The legislation, however, has been effectively killed by West Virginia Democrat Sen. Joe Manchin, who said he wouldn’t support the bill unless the work requirement for parents is added.

Despite not knowing if the enhanced child tax credit will remain in the Build Back Better bill, Joe Biden said he plans to divide the package into smaller pieces.