Can you get Advancement early on child tax credit?

[ginger5195]

Can you get a advancement on your taxes?

[DoninGA]

TurboTax offers a 2022 refund advance starting in January 2023.  If eligible you will be offered the advance by TurboTax, you cannot apply for the advance.

[xmasbaby0]

No.   The monthly advance child tax credit payments were sent out ONLY in 2021 during the months of July 2021 through December 2021.  There are no more advance  CTC payments.   And the TurboTax refund advance loans are not available until sometime in January to mid-February.  You cannot apply for the refund loan.  It has to be offered to you and the money is not issued to you until the IRS accepts your 2022 e-file.

[xmasbaby0]

And....so you know what to expect----the child tax credit for 2022 tax returns is less than the CTC for 2021.   It goes back to a maximum of $2000, with the $1500 refundable amount for the additional child tax credit, which is based on your earnings from working.

[NCperson]

there is no "advance" as there was in 2021 - Congress did not pass the law to have that feature extended.

Your child tax credit will be up to $2000 in 2022 

It is made up of potentially two parts: 

•Non-refundable credit (A.K.A."child tax credit") – lessor of $2,000 per child or whatever is on Line 16 of Form 1040.

•Refundable credit (A.K.A. “additional child tax credit”) - lower of

• $1,500 per child
• 15% of earned income over $2,500
• $2,000 per child less non-refundable credit

@xmasbaby0's point is that unlike 2021, if you did not work, you are not eligible for the non-refundable credit, because your tax would be zero and you are not eligible for the refundable credit, because the 2nd bullet (15% of earned income) is going to be zero and since it's the lower of the 3 bullets, this credit will be zero as well.  

[NCperson]

@xmasbaby0 - the 'sleeper' in the child tax credit, is that if you did not work, but had signficant unearned income, you do get the CTC.  

let's say all your income was unearned and the tax on Line 16 was $3,000 and you had one child.  

the non-refundable credit would be $2,000 (lower of $2,000 per child or the Line 16 tax)

the refundable credit would be zero (because of the 3rd bullet - $2,000 less the non-refundable tax credit).