Will the IRS take my child tax credits if I owe back taxes, student loans, or child support?

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Some people worry that there is a reason they won’t get their full child tax credit for 2021.

Americans are still struggling with the pandemic and its impact on the economy.

Sometimes families will have their tax refunds used to pay off taxes owed or unpaid student loans.

Related: Important Deadlines for IRS and Tax Refunds in 2022

What are some things to keep in mind about the child tax credit and refunds?

According to IRS website, your child tax credit advance payments will not be reduced if you have federal or state debt.

This includes overdue taxes for previous years.

If you are entitled to a refund in 2022 for your 2021 tax return, the remaining balance of your child tax credit may be entered.

They can be entered for tax debt and federal or state debts owed.

Related: Claim $ 8,000 Per Child on Your 2021 Taxes

Advance child tax credits would not be offset if you or your spouse owe child support.

If your spouse has federal or state debt and you don’t, the child tax credit advance payments will not be taken to offset the debt.

They might be when you file your taxes to collect the remaining half, so filing an injured spouse claim is the best course of action.

In short, it looks like prepayments won’t be taken if you have debt, but when you file your taxes your refund might be.

The remainder of your child tax credit is included in your 2021 refund in 2022.

Related: Will Child Tax Credit Payments Continue Into 2022?


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