Will My Child Tax Credit Repayment Protection Amount Decrease Based on My Modified Adjusted Gross Income?

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

See: Reconcile the Child Tax Credit on Your 2021 Tax Return — Here’s How
Find: Stimulus Update — You Could Still Qualify for a $1,400 Payment — Here’s What To Double-Check on Your Taxes

Whether or not you end up owing money depends on your modified adjusted gross income. According to the IRS website, you won’t qualify for any repayment protection if your MAGI is at or above the amounts listed below, based on the filing status on your 2021 tax return:

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

On the other end of the spectrum, you might be due a refund if the amount of your allowable CTC exceeds the total amount of your advance Child Tax Credit payments.

See: Child Tax Credit — How To Claim the Full Amount On Your 2021 Taxes
Find: As Child Tax Credit Expires, Over 21 Million Americans Face Food Insecurity

You might also qualify for full repayment protection based on 2021 income, meaning you won’t need to repay an excess amount if your main home was in the United States for more than half of 2021 and your MAGI for 2021 is at or below the following amount based on the filing status on your tax return:

  • $60,000 if you are married and filing a joint return or filing as a qualifying widow or widower
  • $50,000 if you are filing as head of household
  • $40,000 if you are a single filer or are married and filing a separate return.
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Keep in mind that your repayment protection might be limited if your MAGI exceeds these amounts, or your main home for more than half of 2021 was outside of the U.S.

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About the Author

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