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Opting out of the child tax credit payments: 3 reasons to do it by Aug. 2

  • Street: Waterviolier 116
  • City: Leidschendam
  • State: Maryland
  • Country: Netherlands
  • Zip/Postal Code: 2266 Mc
  • Listed: 25 Ağustos 2021 15:27
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What opting out means for your 2022 taxes Those who choose to decline this year’s child tax credit installments (amounting to half the total) will still receive the same amount of money in the end, but are simply delaying when they receive it. So if you have a child who’s 5 years old or younger by the end of 2021 and your income meets the requirements, you’ll get $3,600 total when you file your taxes in 2022. 

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So if you’re married and file jointly, both you and your spouse will need to opt out. Unenrolling applies only to one individual at a time. If only one of you does so, you will get half the joint payment you were supposed to receive with your spouse, the IRS said.

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You’re concerned the IRS might send you an overpayment based on old tax information from 2020 or 2019, and you don’t want to worry about paying any of that money back next year. It could also be the case if a dependent you claimed previously is aging out of an age bracket before the end of 2021.  That could be the case if your household income goes up because you’ve returned to work or got a new job.

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