All eligible households — even those who have been receiving payments since they began in July — must claim the child tax credit on their 2021 tax return in order to receive the rest of the funds.
“Families who received advance payments will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can properly claim on their 2021 tax return,” the news release noted.
The IRS says it is sending out a letter next month with information that will help taxpayers reconcile the advance tax relief.
For the entire year, the expanded credits work out to as much as $3,600 for each child under the age of 6, and as much as $3,000 per child 6 to 17 years old.
The previous child tax credit capped out at $2,000 for the entire year and did not include those aged 17.