Pro-Tax Preparation Services LLC

2022 SPECIAL TAX ISSUES-CHILD TAX CREDIT, STIMULUS PAYMENTS
You should be aware of the following issues which may pertain to you when filing your tax return. You must report the total amount of Advance Child Tax Credit payments received in 2021. You will receive a letter 6419 from the IRS reporting the amount. Stimulus payments are not taxable, however the IRS will review your 2021 income and may provide an additional stimulus payment as a tax credit if you did not receive the full amount.

THE 2021 CHILD TAX CREDIT- IRS INFORMATION

You qualified for advance Child Tax Credit payments if you have a qualifying child. Also, you — or your spouse, if married filing a joint return — must have had your main home in one of the 50 states or the District of Columbia for more than half the year.

Your main home can be any location where you regularly live. Your main home may be your house, apartment, mobile home, shelter, temporary lodging, or other location and doesn’t need to be the same physical location throughout the taxable year. You don’t need a permanent address to get these payments. If you are temporarily away from your main home because of illness, education, business, vacation, or military service, you are generally treated as living in your main home.

Disbursement of advance Child Tax Credit payments began in July and continued on a monthly basis through December 2021, generally based on the information contained in your 2019 or 2020 federal income tax return. If you are eligible for the Child Tax Credit, but did not receive advance Child Tax Credit payments, you can claim the full credit amount when you file your 2021 tax return during the 2022 tax filing season.