Do I have to report my Advance Child Tax Credit payments from 2021 on my tax return?
When you file your 2021 tax return, you will need to report to the IRS how much you received in Child Tax Credit (CTC) payments.
For most families who received advance payments, this amount will be $1,800 for younger children, or $1,500 for older children. For example, if you have one toddler, you're owed $3,600 in total CTC; if you received $1,800 in advance payments last year, you'll get another $1,800 this year.
The IRS requires you to report how much you received in monthly payments last year when you file your tax return. The IRS will use this number to calculate how much more CTC money you are owed.
If you do not remember how much you received in CTC payments you can look at your bank account records, refer to the letter IRS sent you in January with this information, or log into your online IRS account.
If you can not find the exact numbers for the amount of CTC payments you received in 2021, you should report your best guess of how much you received. There is no penalty for reporting the wrong number, but the wrong number may delay the processing of your refund by several months.