Taxpayers who received advance child tax credit payments this year will need to report those payments on their 2022 tax returns. In some cases, they might need to repay the IRS if their payments exceeded the CTC amount they can claim on their returns.
Whether or not you end up owing money depends on your modified adjusted gross income. According to the IRS website, you won’t qualify for any repayment protection if your MAGI is at or above the amounts listed below, based on the filing status on your 2021 tax return:
$120,000 if you are married and filing a joint return or filing as a qualifying widow or widower
$100,000 if you are filing as head of household
$80,000 if you are a single filer or are married and filing a separate return
On the other end of the spectrum, you might be due a refund if the amount of your allowable CTC exceeds the total amount of your advance Child Tax Credit payments.
You might also qualify for full repayment protection based on 2021 income, meaning you won’t need to repay an excess amount if your main home was in the United States for more than half of 2021 and your MAGI for 2021 is at or below the following amount based on the filing status on your tax return:
$60,000 if you are married and filing a joint return or filing as a qualifying widow or widower
$50,000 if you are filing as head of household
$40,000 if you are a single filer or are married and filing a separate return.