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4 - Erroneous AbatementThe timely filed TC 150 return for TY 2018 is determined to be a nullity. The valid taxpayer filed a return reporting tax of $.00 and withholding of $2,500 which posted as a TC 976. Form 14039 is included with the return. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $5,000, and withholding of $6,000. A CP 2000 proposing a tax increase of $2,000 based on unreported income is issued to the valid taxpayer’s last known

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Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States

Residents of Puerto Rico qualify for CTC but are not entitled to the advanced payments. They will receive any refundable amount when filing their tax year 2021 return.

The increased amount of the credit ($1,000 for qualifying children aged 6-17; $1,600 for qualifying children under the age of 6) is subject to limitation when the modified adjusted gross income (MAGI) exceeds the applicable threshold amount for the filing status:

$150,000 for married filing joint and surviving spouse

$112,500 for head of household

$75,000 for all other filing statuses

When the credit limitation applies, the credit will be reduced by $50 for each $1,000 (or portion of $1,000) in excess of the threshold amount for the filing status. The amount of the reduction must not exceed the lesser of the increased amount of the credit ($1,000 for qualifying children aged 6-17; $1,600 for qualifying children under the age of 6) or 5% of the applicable phaseout threshold range (difference between AGI and threshold).

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▸Contents — Internal Revenue Manual Part 25. Special Topics
Internal Revenue Manual Part 25. Special Topics

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