ACTC need to be returned if not filing a 2021 tax return due to unemployment?

3 replies
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I would like to confirm that if someone receives the ACTC and was unemployed in 2021, therefore not filing taxes for 2021, the ACTC is to be returned to the IRS?

ProSeries Professional

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Camp1040Answer

Level 10

They should file to receive the other half of the ACTC. It would be a disservice to your client not to file.

You no not need any earned income for 2021, the $2500 floor has been suspended.

Camp1040Answer

Level 10

They should file to receive the other half of the ACTC. It would be a disservice to your client not to file.

You no not need any earned income for 2021, the $2500 floor has been suspended.

S

singh

Level 6

Camp1040 is correct. I have already filed such a tax situation and the client received the Child Tax Credit.

qbteachmt

Level 15

Here are IRS resources, FAQ, and guidance:
https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-frequently-asked-questions

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

Repayment protection (in Sched 8812):
https://www.irs.gov/instructions/i1040s8#en_US_2021_publink100077789

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