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

[Always_Learning]

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?

[Camp1040 · Accepted solution]

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.

[singh]

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

[qbteachmt]

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

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