 Income tax 2021-2022, child tax credit part 1b, filers who check a box on line 13, refundable child tax credit, other dependent credit. Get ready to get refunds to the max diving into income tax 2021-2022. Most of this information can be found on the Schedule 8812 Instructions 2021 Tax Here IRS website irs.gov irs.gov income tax formula down here in the credit area, noting that credits and deductions both good credits. However, if you had $1 worth of credit versus $1 worth of deduction, credit basically being better because you generally get to take the full amount of that dollar worth of credit as opposed to a deduction which would be reducing your taxable income on which the tax would then be applied. Also, note that we can think about the credits in two general categories, those which are going to be non-refundable and the refundable credits. The non-refundable credits mean that they don't take the tax liability below zero. The refundable credits may take the tax liability below zero, and if so, then any receipt that you'd get from it wouldn't really be a refund, even though it would be called a refund still, but really it would be kind of like a benefit program in that instance. We can have some credits that might have a non-refundable and refundable portion to them. We're looking at the second page of the form 1040. We're looking at line 919, non-refundable child tax credit or credit for other dependents from Schedule 8812 line 28, refundable child tax credit or additional child tax credit form from Schedule 8812. So now we're considering the Schedule 8812 and the instructions for it and kind of dissecting it. So now we're on part 1A, filers who check box on box on line 13. That's the refundable child tax credit and the additional of the other dependent credit. So if we look at the form then we're looking at, we looked at the last section, we looked at part 1A in general and then we're considering specifically this box 13 which says check all the boxes that apply to you. Box A is check here if you or your spouse if married filing jointly had a principal place of abode in the United States for more than half the year. That would be most people. Box B check here if you or your spouse if filing jointly were a bona fide resident of Puerto Rico. So either of these boxes being checked off we would then move on down here to part 1B. If neither of those boxes were checked off then we that would be a different we'd go to the 1C which we'll talk about in a future presentation. So now we're down here in part 1B in essence of the form. That's going to help us with the calculation of the amount that the prepayment that we had already received the advanced credit that we received taking that into consideration. So if you did not check a box online 13 do not complete part 1B instead skip to part 1C. So most people would be going to part 1B if you're in the United States. So only filers who check a box online 13 should complete this part. Do not complete parts 1C, 2A, 2B or 2C. If you enter 0 on line 14G also complete part 3 otherwise did not complete part number 3. So then we got line 14C, line 14C, if line 14A is 0 enter 0 otherwise enter the amount from the credit limit worksheet A. If you enter 0 you are not claiming the ODC and do not need to use the credit limit worksheet A for part 1B. So that's here on our worksheet we're looking at line 14C where it says if line 14A is 0 that's when we're going to say enter the smaller of line 7 or 12 which we're looking at 7 or 12 which has to do with the other dependent and we're only looking at this case at the child. So we don't have any in the other dependent because we're looking at the child tax credit in just this example we might run different examples but that's just the idea at this point in time and so then if you checked a box on line 13 you do not need to complete credit limit worksheet B. So here's the credit limit worksheet and once again if you checked a box on line 13 you do not need to complete the credit limit worksheet. So line 13 you will recall is right here for the A and B checking one of those boxes most people checking box A there. Line 14F enter the aggregate amount of advanced child tax credit payment you receive for 2021 as reported in box 1 on letter 6419. So that's the letter that you're getting from the IRS to give you the information for the advanced child tax credit that you would receive and if everything was correct you would think that would be basically half of the child tax credit. Now if you're in income phase out limitations it's quite possible the IRS got it wrong or didn't get the exact half because because the phase outs that they based it on the estimates in the prior year would be different than your actual income in 2021. So if you didn't receive any advanced child tax credit payment for 2021 enter zero. So we're looking at 14F here and obviously software helps us out with the calculations because you'd have an interview type of process but I'm putting 1,175 for F says enter the aggregate amount of the advanced child tax credit payments you and your spouse if filing jointly received for 2021. You can see the letters 6419 for the amounts to include in this line. So I put this amount here and then obviously they're going to be subtracting the two out in essence and in general it would be like half generally if everything kind of went well you would think and the difference would be the benefit that you'd still possibly be able to get the credit for in the when filing the tax return. So married filing jointly if you are married filing jointly add the amount reported in box one on your letter 6419 and your spouse's letter 6419 and enter the total online 14F example in 2020 Roger filed a file as single with two qualifying children in 2021 Roger received advanced child tax credit payments of 3,000 based on two qualifying children in 2020 Tiffany filed as head of household with one qualifying child in 2021 Tiffany received advanced child tax credit payments of 1,500 based on one qualifying child both Roger and Tiffany received letter 6419 Roger's letter reports advanced child tax credit payments of 3,000 in box one and two qualified children in box two Tiffany's letter reports advanced child tax credit payments of 1,500 in box one and one one our qualifying child in box two so that's the information you're going to get you're going to get the amount that you got in advanced payments and the number of children that are qualifying Roger and Tiffany were married in 2021 so now they're filing a joint return and the advanced payments were based on on them individually when they were filing separate or as individuals in the prior year and file as married filing jointly on their 2021 tax return Roger and Tiffany will add the amounts from box one of their letters 6419 and enter 4,500 which is the 3,000 plus the 1,300 on line 14 f example 5 in 2020 John and Susan filed a married filing joint return with four qualifying children in 2021 John and Susan received advanced child tax credit payments of 6,000 based on four qualifying children both John and Susan received letter 6419 now they're married they both get the letter but the two letters that go to both of them are for the for the one return that they're filing because they filed joint return John letter reports advanced child tax credit payments of 3,000 in box one and four qualifying children in box two Susan's letter reports advanced child tax credit payments of 3,000 in box one and four qualifying children in box two so basically they still have the four qualifying children on both of the letters so they're not duplicating the children you can see there but they then they allocated three to one spouse three thousand to one spouse and three thousand to the other spouse so the full amount that was received was the 6,000 in that instance for the four children for the married filing joint return which they applied on the letters three and three to the two spouses involved John and Susan file a married filing jointly on their 2021 tax return John and Susan will add the amounts from box one of their letters 6419 and enter 6,000 3,000 plus 3,000 on line 14f example six in 2020 Jane filed a single with three qualifying children in 2021 Jane received advanced child tax credit payments of 4,500 based on three qualifying children Jane received letter 6419 reporting advanced child tax credit payments of 4,500 in box one and three qualifying children in box two in 2020 Tony and Ivy filed as married filing jointly with one qualifying child in 2021 Tony and Ivy received advanced tax credit payments of 1,500 quote for qualifying child both Tony and Ivy receive letter 6419 Tony's letter reports advanced child tax credits of 750 in box one and one qualifying child in box two Ivy's letter reports advanced child tax credit payments of 750 in box one and one qualifying child in box two Tony and Ivy divorce in 2021 and Tony marries Jane later that same year things are getting complex so on their 2021 tax return Tony and Jane file as married filing jointly Tony and Jane will add the amounts from box one on their letters 6419 and enter 5,250 which is the 4,500 plus the 750 on line 14f so you can see how they're they're trying to allocate between the married couples with when they basically fill out these letters to kind of compensate for these for these things that could happen like a divorce and a remarried kind of situation in that instance so so generally hopefully everything you need will be provided to you with the letters that will be provided so that you can get those advanced payments that letter being the 6419 filled out properly even under you know changing circumstances and the life situation