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Millions of families have received advance monthly child tax credit payments this year.
Under the American Rescue Act, the amount parents could claim was increased and half of the credit was prepaid.
Millions of children have passed the poverty line thanks to these payments. Unfortunately, there may be situations where parents have to repay these credits.
Related: Child Tax Credits End In Less Than Two Weeks, How Can You Get $ 1,800 More Per Child?
Payments were made on the basis of the 2020 and 2019 tax returns.
If so, in 2022 when parents file their taxes, they may have to pay that money back.
Many parents have chosen to opt out of payments altogether or not to receive some.
Related: Will the IRS Take My Child Tax Credits If I owe Back Taxes, Student Loans, or Child Support?
That way, if we gave them too much, by not accepting it, they wouldn’t have to pay it back.
Other reasons you may end up repaying payments are divorce, a change in custody, or an aging child.
Children under 6 received $ 300 per month and children 6 to 17 received $ 250 per month.
These payments were made starting in July of each month, with the last of that month being December 15.
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