Question

Dependent check question

Forum|Forum|4 years ago
July 21, 2021
1 reply
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My husband and I file jointly and have two children (15 and 17). We received a check from IRS already however, I think our income will be too much next year to qualify for this credit. Should we deposit the check or not? If we do deposit it and we do not qualify, what will happen?

Thank you!

Nick-K-EA

Advance payments will reduce the amount of the child tax credit that is applied to your return. That could result in a reduced refund, or could leave you owing. The best thing would be to opt out of the advance payments, using the IRS's Child Tax Credit Update Portal. One or two check's isn't going to be much, but if you think even those will put you in the red, you can "put the money back" by making an estimate tax payment on the IRS's payments page.

Nick K, EA