Happy to answer your questions!
1) The deposit you received last month could be an adjustment to your filed return. Any stimulus money not received would have been reported as a Recovery Rebate Credit on your 2020 tax return, Form 1040 line 30. Take a look at your 2020 tax return, and see if you had an amount on line 30, and was that included in the refund on line 35a that you originally received.
You may request a Record of Account Transcript to see any changes the IRS has made to result in the additional refund.
2) The monthly advance payments of the 2021 Child Tax Credit are up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above. Instead of getting this credit as part of your refund in 2022, these payments are sent in advance and represent a portion of the tax year 2021 Child Tax Credit.
Monthly payments will begin on July 15, 2021, and will be sent out through direct deposit, paper check, or debit cards.
IRS payments schedule:
- July 15
- August 13
- September 15
- October 15
- November 15
- December 15
When you file your 2021 tax return during the 2022 tax filing season, you will need to compare:
- The total amount of the advance Child Tax Credit payments that you received during 2021; with
- The amount of the Child Tax Credit that you can properly claim on your 2021 tax return.
Excess Child Tax Credit Amount: If the amount of your Child Tax Credit exceeds the total amount of your advance Child Tax Credit payments, you can claim the remaining amount of your Child Tax Credit on your 2021 tax return.
Excess Advance Child Tax Credit Payment Amount: If you receive a total amount of advance Child Tax Credit payments that exceeds the amount of Child Tax Credit that you can properly claim on your 2021 tax year, you may need to repay to the IRS some or all of that excess payment.
In January 2022, the IRS will send you Letter 6419 to provide the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Please keep this letter regarding your advance Child Tax Credit payments with your tax records. You may need to refer to this letter when you file your 2021 tax return during the 2022 tax filing season.
3) It is always a great idea to review your finances and taxes throughout the year! We have a great tool to assist you!
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