Many tax preparers are facing new challenges during the 2022 tax season related to their clients claiming (or not claiming) the child tax credit and reconciling the advance payments.
NATP went live on Facebook to discuss these challenges and possible solutions to accurately completing the forms required for clients to claim the credits and report or reconcile the advance payments.
There is also detailed information and in-depth examples in March’s TAXPRO Monthly (available to Professional and Premium level members). If you’re not a member and want to become one, go to natptax.com/join. Use the code 22SOCIAL at checkout to take $25 off the new member fee.
Listen to a replay of the live conversation with Sheri Fronsee, NATP tax research specialist, below!
NATP is hosting a webinar (live on Feb. 15 and Feb 16, or on demand) on reporting and reconciling the child tax credit. We’ll discuss how to determine credit eligibility, use Letter 6419 for reconciliation of advanced CTC payments, calculate the safe harbor repayment protection amount and provide examples explaining how to report it on the tax return, specifically Schedule 8812 (Form 1040).
Questions include:
- Roughly 39 million households received monthly advanced child tax credit (CTC) payments. During the next few weeks, those advanced payments will need to be reported and reconciled on the 2021 individual tax returns using the Schedule 8812. Sheri – what’s the latest with Schedule 8812, why are we talking about it?
- Let’s talk about another 2021 change making this even more complicated – parents had the option to receive advance child tax credit payments or not. How does this impact the taxpayer AND tax professional?
- What about the case where the taxpayer receives more money in their advance payments than they were actually eligible for. What’s going to happen in these situations?
- We all know there’s been quite a bit of fallout from the effects of COVID-19, financially and personally. Not all parents have been able to fare well and some split. What happens for these payments in the case where parents aren’t living together?
- The latest news we have is that some taxpayers are receiving incorrect letters from the IRS about their advance payments if they moved. Can you go into a little more detail on that and what tax pros should do if their client is in this situation?
- If someone is listening to this and needs more education on how this topic, what can they do?
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.