If you received more money from the Child Tax Credit last year than you believe you were entitled to, you might be concerned that you will now owe the IRS money. However, this may not be the case because some are fortunate enough that they don’t need to pay for it.
Partial repayment protection eligibility
This tax season, millions of American families who received advance child tax credit payments are calculating how much they received to file their 2021 returns. Some may be concerned that they received more money than they were owed in monthly payments from July to December, either because their income increased in 2021 or because they incorrectly claimed a child who was not eligible.
According to CNBC, taxpayers who earned more than those adjusted gross income amounts may still be eligible for partial repayment protection. What if they received too much through the advance child tax credit last year.
Because the Child Tax Credit was based on 2019 or 2020, not everyone received the total amount. Some families may have received less money than they were entitled to, while others may have received more.
Fortunately, some groups are exempted from having to repay the IRS. Those married filing jointly or filing as a qualified widow with an AGI of $60,000 or less in 2021 will not have to repay the IRS. That threshold is reduced to $50,000 for those filing as head of household. It’s also $40,000 for single taxpayers or married couples filing separately.
Taxpayers with higher incomes last year may still be eligible for partial protection in the event of an overpayment. However, that protection expires at an AGI of $120,000 for married couples filing jointly and widowers, $100,000 for heads of household, and $80,000 for single taxpayers or married couples filing separately, MSN posted.