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IRS Updates FAQs on Child Tax Credits; Publication 972 Now Obsolete

By:
Ruth Singleton
Published Date:
Mar 9, 2022

GettyImages-174879501 IRS Internal Revenue Service

The IRS has revised its FAQs about the 2021 Child Tax Credit and Advance Child Tax Credit payments. These revisions are intended to help taxpayers claim these credits when they prepare and file their 2021 tax returns. 

The IRS noted that, as a result of these changes,  Publication 972, Child Tax Credit, has become obsolete. Taxpayers should refer to Schedule 8812 (Form 1040). This schedule is now used to calculate child tax credits and to report advance child tax credit payments received in 2021, and to figure any additional tax owed if excess advance child tax credit payments were received during 2021. 

The revisions and additions to the FAQs are as follows: 

• 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit: Q3 • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic C: Calculation of the 2021 Child Tax Credit: Q1 • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic D: Calculation of Advance Child Tax Credit Payments: Q1 

The IRS began sending out Advance Child Tax Credit payments in July 2021. The expanded payment program was passed as part of the American Rescue Plan Act. The agency said that it applied to roughly 39 million households, covering 88 percent of children in the United States. The credit generally increased from $2,000 to $3,000 per child (or $3,600 for children under the age of six), and the older age limit of a qualifying child was raised from 16 to 17.  The bill also changed how the credit was distributed; rather than all at once at tax time, half of it was sent to taxpayers  in the form of regular advance payments made throughout the year. The payments were made a monthly basis, with each one being an equal amount.

The Biden administration wanted to extend the expanded tax credits this year as part of the Build Back Better Act, but that legislation stalled in the Senate. Only about half the full amount of the full tax credit was distributed to families last year, Accounting Today reported. Now, taxpayers and tax professionals need to calculate how much can still be claimed, and in some cases, how much is owed to the government if there was too much of an overpayment. Many taxpayers will receive less of a refund this year than they might have anticipated because half of the usual amount of the Child Tax Credit was sent out in advance last year along with the expanded portion

The IRS cautioned that the newly revised FAQs were issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, they may not address any particular taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review. Because these FAQs were not published in the Internal Revenue Bulletin, they will not be relied on or used by the IRS to resolve a case. Similarly, if an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer’s case, the law will control the taxpayer’s tax liability. Nonetheless, a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax. Any later updates or modifications to these FAQs will be dated to enable taxpayers to confirm the date on which any changes to the FAQs were made. Additionally, prior versions of these FAQs will be maintained on IRS.gov to ensure that taxpayers, who may have relied on a prior version, can locate that version if they later need to do so. 




The IRS has revised its FAQs about the 2021 Child Tax Credit and Advance Child Tax Credit payments. These revisions are intended to help taxpayers claim these credits when they prepare and file their 2021 tax returns. 

 

The IRS noted that, as a result of these changes,  Publication 972, Child Tax Credit, has become obsolete. Taxpayers should refer to Schedule 8812 (Form 1040). This schedule is now used to calculate child tax credits and to report advance child tax credit payments received in 2021, and to figure any additional tax owed if excess advance child tax credit payments were received during 2021. 

 

The FAQs new revisions are as follows: 

• 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit: Q3 • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic C: Calculation of the 2021 Child Tax Credit: Q1 • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic D: Calculation of Advance Child Tax Credit Payments: Q1 

 

The IRS began sending out Advance Child Tax Credit payments in July 2021. The expanded payment program was passed as part of the American Rescue Plan Act. The agency said that it applied to roughly 39 million households, covering 88 percent of children in the United States. The credit generally increased from $2,000 to $3,000 per child (or $3,600 for children under the age of six), and the older age limit of a qualifying child was raised from 16 to 17.  The bill also changed how the credit was distributed; rather than all at once at tax time, half of it was sent to taxpayers  in the form of regular advance payments made throughout the year. The payments were made a monthly basis, with each one being an equal amount.

 

The Biden administration wanted extend the expanded tax credits this year as part of the Build Back Better Act, but that legislation stalled in the evenly. Only about half the full amount of the full tax credit was distributed to families last year, Accounting Today reported. Now, taxpayers and tax professionals need to calculate how much can still be claimed, and in some cases, how much is owed to the government if there was too much of an overpayment. Many taxpayers will receive less of a refund this year than they might have anticipated because half of the usual amount of the Child Tax Credit was sent out in advance last year along with the expanded portion

The IRS cautioned that the newly revised FAQs were issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, they may not address any particular taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review. Because these FAQs have not been published in the Internal Revenue Bulletin, they will not be relied on or used by the IRS to resolve a case. Similarly, if an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer’s case, the law will control the taxpayer’s tax liability. Nonetheless, a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax. Any later updates or modifications to these FAQs will be dated to enable taxpayers to confirm the date on which any changes to the FAQs were made. Additionally, prior versions of these FAQs will be maintained on IRS.gov to ensure that taxpayers, who may have relied on a prior version, can locate that version if they later need to do so.

The IRS has revised its FAQs about the 2021 Child Tax Credit and Advance Child Tax Credit payments. These revisions are intended to help taxpayers claim these credits when they prepare and file their 2021 tax returns. 

 

The IRS noted that, as a result of these changes,  Publication 972, Child Tax Credit, has become obsolete. Taxpayers should refer to Schedule 8812 (Form 1040). This schedule is now used to calculate child tax credits and to report advance child tax credit payments received in 2021, and to figure any additional tax owed if excess advance child tax credit payments were received during 2021. 

 

The FAQs new revisions are as follows: 

• 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit: Q3 • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic C: Calculation of the 2021 Child Tax Credit: Q1 • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic D: Calculation of Advance Child Tax Credit Payments: Q1 

 

The IRS began sending out Advance Child Tax Credit payments in July 2021. The expanded payment program was passed as part of the American Rescue Plan Act. The agency said that it applied to roughly 39 million households, covering 88 percent of children in the United States. The credit generally increased from $2,000 to $3,000 per child (or $3,600 for children under the age of six), and the older age limit of a qualifying child was raised from 16 to 17.  The bill also changed how the credit was distributed; rather than all at once at tax time, half of it was sent to taxpayers  in the form of regular advance payments made throughout the year. The payments were made a monthly basis, with each one being an equal amount.

 

The Biden administration wanted extend the expanded tax credits this year as part of the Build Back Better Act, but that legislation stalled in the evenly. Only about half the full amount of the full tax credit was distributed to families last year, Accounting Today reported. Now, taxpayers and tax professionals need to calculate how much can still be claimed, and in some cases, how much is owed to the government if there was too much of an overpayment. Many taxpayers will receive less of a refund this year than they might have anticipated because half of the usual amount of the Child Tax Credit was sent out in advance last year along with the expanded portion

The IRS cautioned that the newly revised FAQs were issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, they may not address any particular taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review. Because these FAQs have not been published in the Internal Revenue Bulletin, they will not be relied on or used by the IRS to resolve a case. Similarly, if an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer’s case, the law will control the taxpayer’s tax liability. Nonetheless, a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax. Any later updates or modifications to these FAQs will be dated to enable taxpayers to confirm the date on which any changes to the FAQs were made. Additionally, prior versions of these FAQs will be maintained on IRS.gov to ensure that taxpayers, who may have relied on a prior version, can locate that version if they later need to do so.

The IRS has revised its FAQs about the 2021 Child Tax Credit and Advance Child Tax Credit payments. These revisions are intended to help taxpayers claim these credits when they prepare and file their 2021 tax returns. 

 

The IRS noted that, as a result of these changes,  Publication 972, Child Tax Credit, has become obsolete. Taxpayers should refer to Schedule 8812 (Form 1040). This schedule is now used to calculate child tax credits and to report advance child tax credit payments received in 2021, and to figure any additional tax owed if excess advance child tax credit payments were received during 2021. 

 

The FAQs new revisions are as follows: 

• 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic B: Eligibility for Advance Child Tax Credit Payments and the 2021 Child Tax Credit: Q3 • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic C: Calculation of the 2021 Child Tax Credit: Q1 • 2021 Child Tax Credit and Advance Child Tax Credit Payments — Topic D: Calculation of Advance Child Tax Credit Payments: Q1 

 

The IRS began sending out Advance Child Tax Credit payments in July 2021. The expanded payment program was passed as part of the American Rescue Plan Act. The agency said that it applied to roughly 39 million households, covering 88 percent of children in the United States. The credit generally increased from $2,000 to $3,000 per child (or $3,600 for children under the age of six), and the older age limit of a qualifying child was raised from 16 to 17.  The bill also changed how the credit was distributed; rather than all at once at tax time, half of it was sent to taxpayers  in the form of regular advance payments made throughout the year. The payments were made a monthly basis, with each one being an equal amount.

 

The Biden administration wanted extend the expanded tax credits this year as part of the Build Back Better Act, but that legislation stalled in the evenly. Only about half the full amount of the full tax credit was distributed to families last year, Accounting Today reported. Now, taxpayers and tax professionals need to calculate how much can still be claimed, and in some cases, how much is owed to the government if there was too much of an overpayment. Many taxpayers will receive less of a refund this year than they might have anticipated because half of the usual amount of the Child Tax Credit was sent out in advance last year along with the expanded portion

The IRS cautioned that the newly revised FAQs were issued to provide general information to taxpayers and tax professionals as expeditiously as possible. Accordingly, they may not address any particular taxpayer’s specific facts and circumstances, and they may be updated or modified upon further review. Because these FAQs have not been published in the Internal Revenue Bulletin, they will not be relied on or used by the IRS to resolve a case. Similarly, if an FAQ turns out to be an inaccurate statement of the law as applied to a particular taxpayer’s case, the law will control the taxpayer’s tax liability. Nonetheless, a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax. Any later updates or modifications to these FAQs will be dated to enable taxpayers to confirm the date on which any changes to the FAQs were made. Additionally, prior versions of these FAQs will be maintained on IRS.gov to ensure that taxpayers, who may have relied on a prior version, can locate that version if they later need to do so.

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