Will my child tax credit refund protection amount decrease based on my adjusted adjusted gross income?

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Taxpayers who received child tax credit advance payments this year will need to report those payments on their 2022 tax returns. In some cases, they may have to reimburse the IRS if their payments exceeded the CTC amount that they can claim on their declarations.

See: Reconcile the child tax credit on your 2021 tax return – Here’s how
Find: Stimulus update – You may still qualify for a $1,400 payment – Here’s what to check on your taxes

Whether or not you owe money depends on your modified adjusted gross income. According to the IRS website, you will not have any refund protection if your MAGI is equal to or greater than the amounts listed below, depending on the filing status of your 2021 tax return:

  • $120,000 if you are married and filing jointly or as an eligible widow or widower
  • $100,000 if filing as head of household
  • $80,000 if you are single or married and filing a separate return

On the other end of the spectrum, you may be eligible for a refund if your eligible CTC amount exceeds the total amount of your child tax credit advance payments.

See: Child tax credit – How to claim the total amount of your taxes for 2021
Find: As child tax credit expires, more than 21 million Americans face food insecurity

You may also be eligible for full repayment protection based on 2021 income, which means you won’t need to repay any excess amount if your primary residence was in the United States for more than half of 2021 and that your MAGI for 2021 is equal to or less than the following amount depending on the filing status of your tax return:

  • $60,000 if you are married and filing jointly or as an eligible widow or widower
  • $50,000 if filing as head of household
  • $40,000 if you are single or married and filing a separate return.

Keep in mind that your refund protection could be limited if your MAGI exceeds these amounts, or if your primary residence for more than half of 2021 was outside the United States

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who has previously held positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work has also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal, and Business North Carolina magazine. He holds a BA in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting has earned him awards from the North Carolina Press Association, Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A North Carolina native who also writes fiction, Vance’s short story “Saint Christopher” placed second in the 2019 Writer’s Digest short story competition. Two of her short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. Her first novel, Voodoo Hideaway, is published in 2021 by Atmosphere Press.

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