A lots of contributors about USA have already received the payments for the first rounds of the Child Tax Credit from the Internal Revenue Service (IRS) corresponding to the July-September period. However, for those who want to stop getting the last three rounds, there is the possibility of canceling the following payments.
The Child Tax Credit provided by the IRS is a program that aims to help low-income families in the US not fall into poverty. However, for taxpayers who are not in this financial limit but also do not have enough annual income to live as comfortably as possible, this program means great support with additional money.
You can read: IRS: know the 10 rights that protect you as a taxpayer.
It is important to note that this tax credit is not free money granted by the government as many people tend to think, it actually works like advance payments of the tax credit that you will generally get on your 2021 tax return, which means that every dollar you you receive decreases the amount you can claim on your taxes for 2022.
For people to be eligible to obtain the credit, it is determined by your most recent tax return, in the case of many taxpayers it is 2020.
Reasons for canceling payments
However, if your situation has changed in the last year, either because your income is higher or someone new has claimed your child as a dependent, a large number of families could be facing a high tax bill for next year.
For taxpayers who find themselves in these cases, they have the option of not obtaining the payments of the child tax credit for the rest of the year, an action that could benefit the amount of taxes they owe to the IRS.
Families who have the opportunity and financial ability to live comfortably without receiving the monthly checks have the opportunity to decide whether to get a large refund check so they can cover essential expenses or spend them for other purposes the following year.
You can also read: Build good credit: five things you need to achieve it.
If you are one of the taxpayers who are planning to decline to obtain the following payments, it is necessary to make your request before the deadline for changes and movements: for payments it will be October 15 and for other changes on October 4.
In the event that you receive the Child Tax Credit money on marriage criteria, the IRS has announced that both taxpayers need to unsubscribe. On the other hand, if one of the spouses excludes himself, the household will continue to obtain monthly payments in the amount of half generally awarded.
For more information, visit the Credits section of My Pocket.
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