When you file your 2021 tax return during the 2022 tax filing season, you will need to compare:
1) The total amount of the advance Child Tax Credit payments that you received during 2021; with
2) The amount of the Child Tax Credit that you can properly claim on your 2021 tax return.
Excess Child Tax Credit Amount: If the amount of your Child Tax Credit exceeds the total amount of your Child Tax Credit payments, you can claim the remaining amount of your Child Tax Credit on your 2021 tax return.
Excess Advance Child Tax Credit Payment Amount: If you receive a total amount of advance Child Tax Credit payments that exceeds the amount of Child Tax Credit that you can properly claim on your 2021 tax year, you may need to repay to the IRS some or all of that excess payment.