Those who are not receiving payment can claim missed payments on their 2021 tax return.
The Internal Revenue Service and the Treasury Department announced on Wednesday that the final advance Child Tax Credit (CTC) payment for December was distributed to millions of American families. If families are eligible and did not receive advance payments, they are able to claim the CTC on their 2021 federal tax return to receive those payments.
This final patch of monthly payments totaled about $16 billion and reached more than 36 million families across the country. The American Rescue Plan distributed more than 200 million payments totaling over $93 billion. These payments were received July 15, August 13, September 15, October 15, November 15, and December 15. Families received up to $300 per month for each child under the age of 6 and up to $250 per month for each child ages 6-17.
Most families will have seen this direct deposit in their account on December 15th. For those who receive payment via check, they should allow for additional time for it to be delivered via mail. Eligible families who filed a 2019 or 2020 federal income tax return are receiving the CTC.
Are you eligible for the advance Child Tax Credit but didn’t receive payments? You can claim the full amount of the CTC on your 2021 federal tax return when you file in 2022, even if you don’t normally file. If you did receive advance payments, you will need to file a 2021 tax return and compare the payments you received in 2021 with the amount of the CTC you can properly claim on your 2021 tax return. The IRS will be sending Letter 6419 in January to help taxpayers reconcile the advance payments with the total amount of CTC received and the number of qualifying children to use to calculate advance payments.
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