The IRS bases this year’s monthly payment amounts on your 2019 or 2020 tax return. There’s plenty that could change between tax seasons — for instance, a pay increase or a dependent aging out of an eligibility bracket. That could result in an “overpayment,” which could mean owing money to the IRS when an adjustment is made on your 2021 return. One way to prevent that from happening is to update your household details online. In the next month, a portal designated for the child tax credit should allow you to do so.
So what if you don’t want to wait? The best way to avoid potentially owing the IRS money is to opt out of advance payments — here’s how. With so many moving parts, it can get confusing fast, but the IRS has resources to help you check your eligibility, unenroll from the monthly checks and more. We’ll explain how to estimate how much money you’ll get, how you can prepare now and what non-tax-filing parents should know about the credit so they can register for payments. This story was recently updated.
