Yes, not fun to have to repay the advance payments. Since your one dependent would not be eligible for the Child Tax Credit on your 2021 tax return, you may need to repay the amount of the advance payments you receive. Note the "may need to repay". There is a repayment protection based on your 2021 adjusted gross income.
Your repayment protection amount will decrease based on how much your modified adjusted gross income (AGI) is greater than the following amounts based on the filing status on your 2021 tax return:
- $60,000 if you are married and filing a joint return or if filing as a qualifying widow or widower;
- $50,000 if you are filing as head of household; and
- $40,000 if you are a single filer or are married and filing a separate return.
This repayment protection amount is then phased out – or reduced – as your modified AGI exceeds the amount above. Your repayment protection amount will equal $0 and your repayment amount will not be reduced when your modified AGI is at or above this higher amount based on the filing status on your 2021 tax return:
- $120,000 if married and filing a joint return or if filing as a qualifying widow or widower;
- $100,000 if filing as head of household; or
- $80,000 if you are a single filer or are married and filing a separate return.
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