Note: Advance Child Tax Credit payments were for tax year 2021 only.
Yes. You will need to report any Advanced Child Tax Credit payments you receive on your 2021 tax return. This will be similar to reporting your stimulus payments on the 2020 return.
How will I know how much I received?
The IRS will send a letter (6419) in early 2022 indicating the amount of the Child Tax Credit payments already paid. Keep the letter for your records when you file your return. Misreporting the amount received could result in delays in processing your return.
Will I need to pay the advanced Child Tax Credit payment back?
If the amount of your total Child Tax Credit is more than the total amount of your advance Child Tax Credit payments, you can claim the remaining amount of your Child Tax Credit on your 2021 tax return.
If the amount of your total advance Child Tax Credit payments is more than the amount of Child Tax Credit that you can claim on your 2021 tax year, you may need to repay to the IRS some or all of that excess payment.
Can I adjust my advance Child Tax Credit payment? No longer available for 2022
The IRS has opened the Child Tax Credit Update Portal (CTC UP) to help ensure that the IRS has the most up-to-date information regarding your eligibility for the 2021 Child Tax Credit. The IRS will use the updated information to adjust the amount of the advance Child Tax Credit payments issued.,
The IRS will add features to CTC UP later this year, which are described in What if information about my bank, mailing address, income, or family has changed during 2021? on the IRS website.