News

Child tax credit 2021: US parents may owe money after monthly payments are over

HOUSTON, Texas (KTRK) – Not anymore monthly child tax credit payment coming soon, but the IRS is sending more information to parents, which can help them figure out if they owe taxes.

UPDATE LETTER TO PARENTS ABOUT THE TAX CREDIT FOR THEIR CHILDREN

In 2021, Congress changed the child tax credit. The credit has varied from $2,000 up to $3,600 per child.

Parents can also get half of the credit in advance in the form of a monthly payment. The final payment was delivered in December.

Now, parents are getting information from the IRS again. Tax preparer Edward Gardner said parents should expect a letter from the IRS by the end of January.

“They’re basically just letting them know in their letter that’s coming out that if you get the enhanced credit, you won’t get the full amount on your 2021 tax return,” Gardner explains.

The IRS started sending mail in December, but it didn’t end until January. To learn more about letters, click here.

IF YOU RECEIVE A CHILD’S TAX CREDIT, YOU MAY HAVE SOME IT BACK

The amount parents receive is based on their 2020 taxes. Since this is an advance on their 2021 taxes, they may not be entitled to some.

“We’re waiting for the availability of sheets,” Gardner explains.

Parents may not have to wait for a computer to determine if their child owes money. There are several ways to predict what might happen, says Gardner.

If you claim a child in 2020 but not 2021, you may owe money. If your income increases in 2021 compared to 2020, it is also likely that you owe money.

Another way to tell is if you’ve received a monthly payment, but you don’t usually get a tax return.

“If they typically break even or owe a little, they won’t get that credit, and they could end up owed some tax when they file their 2021 tax return,” Gardner said.

2022 GET MONTHLY CHILD TAX CREDIT PAYMENTS

This may be the last tax season for which parents have to charge an advance credit. Congress passed the enhanced benefit last year. It was included in President Joe Biden’s Building Better Back legislation, but it has stalled in the US Senate.

“Right now, that’s the fear we’re having,” Gardner said. “We don’t know what the IRS is going to change in the tax code this year. Of course, we’ve got a better Build back provision that wasn’t passed last year.”

This means that monthly payments starting in mid-2021 will not be made again in 2022.

Nick Natario covered all the ways families and individuals can get help during the pandemic. Get updates by following him Natario on Facebook, Twitter and Instagram.

Copyright © 2022 KTRK-TV. Copyright Registered.

https://abc13.com/child-tax-credit-2021-irs-do-i-owe-money-2022-taxes/11421614/ Child tax credit 2021: US parents may owe money after monthly payments are over

Dais Johnston

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@ustimetoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button