February 2, 2022 - Douglas Myser

November child tax credit paid back. An old wise saying goes, "Nothing is free". Well for those who received the November advance payment for the child tax credit, that may be the case as they may have to pay it back. If your income was substantially larger in 2021 than it was in 2019 or 2020, you could have to pay a portion of your Child Tax Credit advance payments back to the Internal Revenue Service. The good news is that you will have a bit of time to figure it out and to return the funds if that is the case. In addition, the overpayments will be added to your tax bill or it will decrease the amount of your tax refund. You may want to consult a Tax Resolution Services firm. You can get more information on the Internal Revenue Website at IRS.GOV November child tax credit paid back.

How to determine if you have to pay it back ? To qualify for full payment, you have to earn less than $112,500 as head of household or $150,000 for married couples filing jointly. If your 2021 income exceeds that amount, you may want to return a portion of the tax credit. If your making under $40,000 per year, you don't need to pay back any overpaid credits. Single filers making between $40,000 and $80,000 may need to pay back a portion of the overpayment. Married couples filing jointly are exempt from returning overages if they make under $60,000. Those making $60,000 or up to $120,000 may need to return a portion of the payments. Those who file as head of household are exempt from returning overpayments if they make less than $50,000. While those making between $50,000 and $100,000 will need to return a portion.

Not sure about your status, log into the IRS Child Tax Credit Update portal, which is available at the Internal Revenue Website at IRS.GOV You can get all the information you need at that website.