No. They are not income and will not be reported as income on your 2021 tax return. ACTC payments are advance payments of your tax year 2021 Child Tax Credit.
However, the total amount of ACTC payments that you receive during 2021 is based on the IRS’s estimate of your 2021 Child Tax Credit. If the total is greater than the Child Tax Credit amount that you are allowed to claim on your 2021 tax return, you may have to repay the excess amount on your 2021 tax return during the 2022 tax filing season.
For more information regarding your eligibility for repayment protection, and how to reconcile your advance Child Tax Credit payments with your Child Tax Credit on your 2021 tax return, see
Topic H: Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return.
For this reason, you may wish to unenroll from receiving advance Child Tax Credit payments.
You can unenroll through the Child Tax Credit Update Portal (CTC UP).
For more information regarding the CTC UP, see Topic F: Updating Your Child Tax Credit Information During 2021.
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