ATLANTA — One of the biggest tax developments in 2021 that filers are now having to work through is the child tax credit and how it fits into their return.
For most parents, it would have been pretty straightforward - the IRS automatically enrolled most people for the advance payment checks that began last year if they were eligible based on their 2020 tax return.
But that obviously wouldn't cover everyone - namely, people who had a baby in 2021 that the IRS wouldn't have a record of yet and people whose children aged out of the tax credit in 2021 by turning 18.
In both those cases, parents were directed to a new IRS portal to either opt in or opt out from the monthly $300 checks the government began sending as an advance on the tax credit.
But what if you had a baby in 2021 and simply never updated your status through the portal? What comes now that it's tax filing time?
How your child tax credit will work if you didn't claim the advance payments
Fortunately, there's good news - it's actually very simple.
You'll just need to claim the full child tax credit - $3,600 for children under 5 and $3,000 for children aged 6-17 - in your return.
The IRS explains: "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."
This is actually how it used to always work. The child tax credit was not paid out in advance by the government sending checks in the mail, it was simply calculated into the yearly tax return.
How do I claim the full child tax credit on my 2021 tax return?
Certified public accountant Dr. Shireda Howard told 11Alive: "They would just fill out their tax return taking advantage of the credit when they actually file. The tax preparer will be able to determine if they qualified, since there were guidelines required in order to qualify for the credit."
If you're trying to do your taxes on your own, you'll have to fill out the Schedule 8812 form to attach to your regular Form 1040 return.
The IRS notes that the Schedule 8812 form is used "to figure your child tax credits, to report advance child tax credit payments you received in 2021, and to figure any additional tax owed if you received excess advance child tax credit payments during 2021."
And that's really it - fill out the form, and the full $3,600 or $3,000 credit (or more, if you have more than one child) will be added into your tax refund check. Or, if you wind up owing money on your return to the government, it'll be deducted from what you owe.