This Monday is the deadline to ask the Internal Revenue Service (IRS) to suspend your monthly advance payments of the Child Tax Credit – improved only for this year due to the pandemic – if you prefer to receive the full amount of that credit when presenting your 2021 tax returns or in case you estimate that by that time you will no longer be eligible for it.
Just for this year, the Child Tax Credit It was raised to $ 3,000 for each child between the ages of 6 and 17, and to $ 3,600 for each child under the age of 6.
“You may prefer to request the suspension of advance payments of the Child Tax Credit for several reasons, including if you think that the amount you will owe in taxes will be more than the refund you expect when you file your tax return in 2021,” said the IRS.
“The payments you will receive are an advance of the Child Tax Credit that you would normally receive when you file your 2021 income statement. Since these credits are being paid in advance, every dollar you receive will reduce the amount of the Child Tax Credit that you can claim on your 2021 return. This means that by accepting child credit payments, the amount of your refund may be reduced or the amount you owe in taxes may go up, “he explained.
It is important that, to avoid owing taxes, you ask to stop payments this June 28. If you miss this deadline, you will receive the July payment, if applicable, but you will have the opportunity to request the suspension of the next advance credit payments.
After the deadline of June 28, the next will be August 2. Here you can check the deadlines for each month. And here you can access the IRS tool to stop your monthly payments.
Those who qualify will begin receiving half of those amounts in monthly payments starting July 15. The other half must be claimed when filing tax returns next year.
In addition to the tool to request the suspension of advance payments, the IRS put into operation two others to verify if you are eligible, below we explain more about them: