IRS Child Tax Credit Payments
Beginning July 15th, the IRS started sending out advanced payments for the enhanced Child Tax Credit passed by Congress earlier this year. These payments are being made based on last year’s tax filing. Half of the total tax payment is being paid out in monthly installments through the rest of this year and the other half can be claimed when you file your taxes next year.
But for people in certain situations, they may want to consider turning off these advanced credits since they may need to be paid back in some situations, including:
- Your income went up considerably in 2021 compared to what it was in 2020
- Your child turned 18 during 2021 and is now an adult and no longer eligible
- You are divorced and taking turns claiming the child tax credit
- The IRS miscalculated your income and you are receiving the credit even though you shouldn’t be
If one or more of these situations applies to you, you can avoid the potential of paying them back in the form of a large tax bill next year by opting out of these tax credits on the IRS website: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
