Child Tax Credit Tax Return: Will I owe money?

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CLEVELAND (WJW) – The IRS has updated its list of frequently asked questions on how child tax credits and advance child tax credits affect people’s tax returns in 2021.

Now, big questions like calculating your payments and unsubscribing from payments can be answered in one place. And that’s a good thing given that government money given to families to help during the pandemic could cause potential tax refunds to change, depending on how much money you’ve earned.

As advance payments were estimates based on what families did in 2020, people should be wary that there could be a gap.

Families could have secured monthly payments of up to $ 1,800 for children 5 and under, and up to $ 1,500 for ages 6 to 17.

But the payments all depended on income, and if some households increased in what is called a phase-out, they might have to repay some of that money back to the government. The two cut-offs (phase-outs) to watch out for are $ 150,000 as a couple or $ 75,000 as a single parent, then $ 200,000 for single filers and $ 400,000 with double income.

Taxpayers should also be on the lookout for separate letters from the IRS coming this month, discussing not only the child tax credit payment, but the stimulus checks as well. When these arrive, don’t throw them away, they should break down how much money you were given.

As the IRS would still be behind on some tax returns as of 2020 (the 6.3 million reported were still not processed as of December 18), it is imperative to fill out the forms as correctly as possible to receive any refunds. timely.

Find the all-new Child Tax Credit FAQs here.

Learn more about filing your tax returns, which are due April 18, here.

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