If you received monthly advance child tax credit payments in 2021, you may get a smaller refund or owe money this filing season.
Families may not expect the smaller write-off at tax time, or worse, getting a bill to repay their credits, financial experts say.
However, filers may prepare by reconciling payments and working with a tax advisor to estimate 2021 income.
If you received monthly advance child tax credit payments in 2021, there may be a costly surprise when filing your return.
The American Rescue Plan, enacted in last March, increased the tax break to $3,000 from $2,000 per child under age 17, with $600 more for kids under age 6.
Millions of families received upfront monthly credits, reducing their write-off at tax time, which may trigger a bill, depending on their 2021 modified adjusted gross income.