In 2021 the IRS changed the child to credit for taxpayers who make under $150,000. The new law reads that for children under the age of (6) the taxpayer will receive a credit of $3,600, for children from 6 to including 17 the taxpayer will receive a credit of $3,000. Please note the credit goers by the child’s age as of December 31st, 2021.
Also, the IRS starting issuing monthly advancements of $300 for children under age 6 and $250 for children 6 through 17. These advancements will have to be reconciled on the taxpayers 2021 personal income tax return using form 8812. PLEASE NOTE that if the amount that you report as received for the advancement is different than what the IRS reports to the taxpayer on Letter 6419 their refund will DELAYED!!!
It is also possible that if you received an advance in error due to that it is not the taxpayer’s year to claim their child, you the taxpayer may have to pay back the advancement to the IRS.
For families who income is over $150,000 the old child tax credit still is in play, that is any child under age 17 the taxpayer will receive a credit of $2,000.