- Divorced and single parents are warned to opt out of the $ 3,600 child tax credits.
- Some may have to pay the money back.
- Millions of families have begun receiving monthly payments of $ 300 for each child under the age 6 and $ 250 for each child between the ages of 6 and 17.
Divorced and single parents are cautioned not to receive the $ 3,600 check for the child tax credit as some may have to pay it back, The Sun reported.
The warning comes after millions of American families began receiving monthly payments of $ 300 for each child under the age of 6 and $ 250 for each child between the ages of 6 and 17.
Divorced parents warned to opt out of child tax credit payments
Regardless of whether the contributing parents qualify to receive the payment of the child tax credit, only one can claim the money for each child annually, usually the parent who has custody of the child for the longest time in the year is the one who receives the check of up to $ 3,600
For this reason, they urge divorced parents to opt out unless only one of them claims the credit. Also, if the parents alternate years in child custody, the situation becomes a bit more complicated since the payments of the child tax credit are based on the tax returns for 2020 or the most recent.
What Should Divorced Parents Do?
Divorced parents can choose not to participate now, Janet Holtzblatt, lead researcher at the Urban-Brookings Center for Tax Policy, told The Sun otherwise, “there is a risk that you will have to repay it,” she added.
Once the Internal Revenue Service (IRS) processes the tax return for 2021 in the year 2022 and verifies that a taxpayer received more money than they should, they will be forced to return the excess. “The only exception is for people who earn less than $ 40,000 a year who will not have to repay the excess money,” said the reviewed medium.
Child Tax Credit Stimulus Check May Be Returned
East benefit it began to be delivered since last July 15 and it is basically so that the people They can care for their dependent children, especially in this time of the coronavirus pandemic that affected thousands of families in the United States.
THEY SEEK TO REDUCE THE RATE OF CHILD POVERTY
Biden has said the new monthly payments, which will average $ 423 per family, are crucial to halving the child poverty rate. But it also launches a philosophical battle over the role of government and the responsibility of parents.
Some 15 million households will now receive full credit. The monthly payments represent $ 300 for each child 5 and younger and $ 250 for each child between the ages of 6 and 17. The payments expire in one year, but Biden is pushing to extend them until at least 2025.
Economic Stimulus Check: HOW MUCH SUPPORT IS IT?
The president of the United States, Joe Biden, wants to make the payments permanent and that makes this first round of payments a test of whether the government can improve the lives of families with the financial support that is already being delivered.
Yet Democrats see it as a historic program similar to Social Security, saying it will lead to better adult outcomes that will aid economic growth. Many Republicans say the payments will discourage parents from working and contribute to long-term poverty.
WHY RETURN THE MONEY?
That amount that will be given will be only half of what was offered to them, next year they will be able to claim the remainder from the government, but as long as it is done in tax filing season, so you must be very vigilant.
However, if a parent received more than their child tax credit, it is very possible that they will have to return that amount when they file their taxes next year, so they must submit the paperwork provided to them. indicate. Filed Under: Economic Stimulus Check
IRS checks everything
It must be pending because if the income of the parents goes up this year, next year they would have to return the corresponding amount, according to the threshold that is $ 75,000 for individual taxpayers and $ 150 thousand for joint taxpayers.
If your income exceeds a certain amount, the law makes it very clear that this money must be refunded when the 2021 tax return is filed, for which the IRS must review the 2020 tax presentation. Filed Under: Child Tax Credit.
IF YOU DIVOR, THERE WILL ALSO BE CHANGES
Payments are conditional on the father’s marital status, so if it changes in 2020, the amount of income will also change in the event of a divorce with your partner, so they must also be very vigilant.
If you claim money for fewer children in 2021 than those you had in 2021, it will also result in an excess of resources that in the end you must return to the IRS authorities who will have a magnifying glass to be able to point out any changes. Filed Under: Child Tax Credit.
Economic stimulus check: WATCH OUT
If for any reason you consider that you will receive an overpayment, you can resort to two options that the IRS authorities present to you through their website, so that you are not so prejudiced when making adjustments.
The first option is to decide not to receive the payments per month that the Joe biden government will give, the second is to be able to control a possible overpayment at the time you update any lagged information about your income, or marital status. Filed Under: Child Tax Credit.
HOW DO I KNOW IF I QUALIFY?
Some Hispanics still wonder: How do I know if I qualify for the Child Tax Credit? and to solve those doubts, the Internal Revenue Service (IRS) launched a tool in no more and no less than Spanish
Weeks ago, the IRS made the Online Child Tax Credit Eligibility Tool available to citizens, although it was only in English at the time. Now, Latinos can run to use it in Spanish so that there is no doubt and definitely find out if their first check arrived this July 15. Filed Under: Child Tax Credit.
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