Parents warned, you may need to repay all Child Tax Credit payments based on your child’s birthday
The IRS asks parents to use the online portal to update all tax information before the end of the tax year.
Your information may need to be updated or you may have to refund any overpayments to the IRS.
Parents who have received the full amount of child tax credits that exceed the amount they can actually claim may have to repay the excess amount.
Related: Parents Have Only One Week To Withdraw From Last Child Tax Credit Payment
Each child under six received a total of $ 1,800 and children aged 6 to 17 received $ 1,500.
If your child turns 18 before the end of 2021, he or she is not entitled to a payment.
The amount you receive is based on your 2020 or 2019 tax return. It is also based on the updates you provided to the IRS in 2021.
Due to changing life and circumstances, the IRS may have sent you more than the credit that was allowed to you.
What can cause overpayment and is there a way to stay protected?
The changes can be as simple as an eligible child no longer living with you in 2021.
The increase in income could change that as well.
Related: Americans Are Waiting For Their Lump Sum Of $ 1,800 For Christmas Shopping, Are You Eligible?
Changes in deposit status can change how much you’re allowed, and if you’ve lived outside the US for more than half the year, you may have received more than you’re entitled to. .
If you’ve been overpaid, you may need to pay it back in 2022.
Some people will have full payment protection and will not need to repay the excess funds returned to them.
If your home was in the United States for more than half of the year and you had certain modified AGIs, you are eligible.
The AGI to qualify is $ 60,000 or less if filing is spouse or widower, $ 50,000 if filing as head of household and $ 40,000 if filing is single or separate.
You are not eligible if your AGI is $ 120,000 as married or widower, $ 100,000 as head of household, or $ 80,000 if filing alone.
A letter titled Letter 6419 will be sent to families detailing what they were paid in 2021 for their 2022 tax returns.
Related: Child Tax Credit Is Fully Refundable, Here’s What It Means
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