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The Internal Revenue Service (IRS) began on Thursday sending more than 35 million families the first deposit of the Tax Credit for Children of 2021 . Five more deposits will be deposited month to month until December unless, in case you decide to opt for advance payments.
The six payments of . Eligible parents can claim up to $ 3, 600 dollars for each of your children under six years of age and $ 3, 000 dollars for each child aged six to 15 years this year . The rest of the credit to which you are entitled you can claim it in 2022 through the tax returns that you will submit .
One of the changes included in the American Rescue Plan is an additional stimulus for families in addition to providing a basic income to parents to improve the lives of minors for about 39 million US households according to IRS estimates.
Like Payments Economic Impact, better known as stimulus checks, the last payments that the IRS is sending are advances of the improved tax credit . Unlike stimulus checks, if the IRS overpays you, that money will be taken out of your tax refund or you will even have to pay for it . For this reason, some families have decided to opt out of receiving advance payments , especially in the event that they expect to owe an income tax amount of 2021.
If you have not yet opted to unsubscribe from advance payments, you will not be able to suspend the July payment, but you will have until August 2 to suspend the next monthly payment of the Tax Credit for Children of 2021 along with the rest . If you change your mind after canceling the advance payments you will have to wait until the end of September to restart the monthly payments, so far the IRS does not offer that option on its website.
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Child Tax Credit: The 53% of parents “know almost nothing” about the program
What if I don’t want to receive monthly payments of the Child Tax Credit?
Suspension of advance payments of the Child Tax Credit 2021 simply leave on the table the rest of the credit that your family is entitled to receive to claim it next year when you file your tax return. Depending on your tax debt for 2021 and any other tax credits you may claim, you could receive a larger tax refund . If you owe less taxes than the amount of credits you can claim, the balance will be sent to you as a tax refund.
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