Overview of the Child Tax Credit (CTC)
The Child Tax Credit (CTC) provides vital financial support to families raising children. In recent years, many families received advance payments of the credit. At tax time, these payments must be reconciled with your return — and mistakes can lead to IRS disputes, refund delays, or denied credits.
Advance Payments Explained
Families received monthly advance payments based on IRS estimates.
At filing, the IRS compares payments received with actual eligibility.
Overpayments must be repaid, while underpayments increase your refund.
Reconciliation Process
Report all advance payments on your tax return.
Match IRS Letter 6419 with your records.
Ensure dependents meet residency and age requirements.
Errors can trigger IRS exams or denied credits.
Proof of Residency
The IRS often requires documentation to prove a child lived with you for more than half the year. Acceptable proof includes:
School records
Medical records
Lease agreements or utility bills
Official letters showing residency
Common Mistakes
Forgetting to report advance payments.
Claiming ineligible dependents.
Missing or incorrect Social Security Numbers.
Failing to provide proof of residency when requested.
Case Example – CPA Clinics in Action
A parent’s CTC was denied after an IRS exam questioned residency. The client feared losing their refund.
CPA Clinics Solution:
Reviewed IRS notice and gathered residency documents.
Communicated directly with IRS examiners.
Restored the client’s Child Tax Credit and refund.
Outcome: Refund secured, no penalties, peace of mind restored.
CPA Clinics & LITC Connection
Through the IRS‑funded Low Income Taxpayer Clinic (LITC) program, CPA Clinics provides:
Free IRS representation in CTC disputes.
Appeals support for denied credits.
Multilingual education (English, Spanish, Urdu, Bengali).
Expert guidance for ESL taxpayers facing IRS exams.
CPA Clinics helped 1,200+ taxpayers, protecting $2.5M+ in refunds and credits — all at no cost.
CEO Message
“At CPA Clinics, we know how important the Child Tax Credit is for families. When IRS exams or disputes threaten your refund, we step in to protect your rights. Through the IRS‑funded LITC program, we provide free representation, education, and advocacy — ensuring families get the support they deserve.”
-Arjumand J. Khan
Contact Us – We’re Here to Help
📞 Phone: (516) 464‑7444
📧 Email: info@cpaclinics.com
🌐 Website: www.cpaclinics.com
📍 Locations: Bronx, Manhattan, Hempstead, Hicksville
Key Takeaway
The Child Tax Credit is a lifeline for parents, but advance payment reconciliation and IRS exams can complicate the process. With CPA Clinics’ free help under the LITC program, families can secure credits, avoid penalties, and protect their taxpayer rights.
