Child tax credit: deadline to waive monthly payments and receive it in full in spring 2022

Child tax credit: deadline to waive monthly payments and receive it in full in spring 2022

Monthly child tax credit deposits began being sent by the IRS on July 15.

Photo: Stephen Maturen / Getty Images

Effective July 15, the Internal Revenue Service (IRS) began automatically distributing payments worth up to $ 300 per child to tens of millions of families in the United States. Although monthly payments are scheduled, parents will be able to choose how to receive the money.

The deadline you can choose not to receive the child tax credit will be August 2.

Selecting this option will prevent you from continuing to receive monthly child tax credit payments through December and receiving a full payment during April 2022. However, the Internal Revenue Service (IRS) has reported that it is adding a new feature on their website for families who choose to leave and, should they change their mind, can return to receive monthly payments again.

Each child under the age of six at the end of the year could receive up to $ 3,600 and those between the ages of six and 17 at the end of 2021 could receive up to $ 3,000.

Related: $ 12,200 IRS dollars – The amount for a family with two children under the age of 18 to collect the child tax credit and stimulus check

If you decide not to receive the child tax credit voluntarily You could have an advantage if you are one of the taxpayers who in most cases owes money to the IRS when you file your tax return.

In this way in 2022 you can use this credit in your favor and pay your taxes instead of spending half the money for the next 6 months.

Cancel the monthly payment of the child tax credit It will allow you to obtain protection so that you do not have to pay an additional amount of money to the IRS.

Households with adjusted gross income equal to or less than $ 40,000 on an individual tax return, $ 50,000 on a family member’s return, and $ 60,000 on a joint tax return they will not have to repay any overpayment of the Child Tax Credit they receive. However, households making $ 80,000, $ 100,000, and $ 120,000, respectively, they will have to return the entire excess payment. So households with incomes between these thresholds will have to pay back a part of the extra payments.

The IRS is based on your tax return that you filed in 2019 and 2020 unless you are not a tax filer you will avoid having to return part of the money but you will continue to receive what is due to you.

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