How should I handle that on my tax return? The child tax credit is causing headaches for both filers and tax pros alike. There were a lot of temporary changes made to the child tax credit just for 2021. And then you will have to claim the other half of the credit you’re owed, which you will get by way of a refund. While the payment isn’t taxable, you should report the number from that letter on your 2021 return.

Source: CNN April 04, 2022 17:06 UTC