Millions of families have received the monthly advanced child tax credit payments this year.
Under the American Rescue Act, the amount parents could claim was expanded and half of the credit was paid in advance.
Millions of children rose above the poverty line thanks to these payments. Unfortunately, there may be situations where parents need to pay these credits back.
The payments were made based on filers 2020 and 2019 tax returns.
If that’s the case, in 2022 when parents file their taxes, they may need to pay that money back.
Many parents chose to opt out of the payments entirely or do not receive some of them.
Related: Will the IRS take my child tax credits if I owe back taxes, student loans, or child support?
This way if they were being given to much, by not accepting it they won’t be forced to pay it back.
Other reasons you may end up paying the payments back is due to divorce, a change in custody, or a child aging out.
Children under age 6 were given $300 per month and children ages 6-17 were given $250 per month.
These payments were given starting in July every month, with the final one this month on Dec. 15.
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