As Americans prepare their taxes, many are wondering if they will need to pay back the advanced child tax credit payments.
Most will not need to pay it back.
Millions of Americans benefitted from the advanced monthly payments that went out in 2021.
Many families are worried that they’ll need to repay it because of an income increase. Other worry their child becoming ineligible results in repayment, but that might not be the case.
36 million families in all received the advanced credit.
The credit went from being worth $2,000 to $3,600 for kids under 6 and $3,000 for kids between 6 and 17.
Those earning under $75,000 single or $150,000 jointly qualified.
How do families stay protected from paying back the child tax credit?
Some families have a repayment protection on the money they were sent if the IRS overpaid them.
If you are married, filing jointly, or a qualified widower, you do not need to pay it back if you have an AGI of $60,000 or less.
You’re protected as head of household with an AGI of $50,000 or less.
Single filers are protected at 40,000 or less.
Partial protection is available for married couples or widowers making $120,000 or less.
Head of households making $100,000 or less are partially protected, as well as single filers making $80,000 or less.
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