• Families who had significant increase in income may need to repay some of the child tax credit they received
  • People whose filing status change may also need to repay tax credit money
  • Nearly four million children are now at risk of falling into poverty

Some households who received advanced Child Tax Credit money in 2021 may have to repay it when they file their taxes this year.

Families who had a significant increase in income from 2020 to 2021 may need to pay back some of all of the money they received from the monthly tax credit payments issued by the government between July to December last year.

This means single filers, households and couples whose incomes increased beyond the maximum threshold to qualify for the payments would need to pay back some of the tax credit upon filing their taxes this year. The thresholds were $75,000 for individuals, $112,500 for heads of household and $150,000 for joint filers, The Motley Fool reported.

People whose filing status changed may also need to pay back some or all of the child tax credit payments. This is because a change to a person’s filing status may have resulted in an overpayment.

Custody situation changes can also lead to a household paying back some or all of the money it received. According to the government guidelines, the parent would only qualify for Child Tax Credit if the child lives with them for half a year or more.

People who lived more than half a year out of the United States may also need to repay any Child Tax Credit money they received over the course of 2021.

The repayments come after Congress allowed the program to expire last year. While Democrats attempted to revive the expanded Child Tax Credit as part of President Joe Biden’s Build Back Better plan, the initiative was stalled after Sen. Joe Manchin, D-W.Va., opposed the passing of the bill.

Nearly four million children are now at risk of falling into poverty following the end of child tax credits in December, according to an analysis from the Center on Poverty and Social Policy at Columbia University.

Additionally, households have also run out of financial assistance as Congress has yet to indicate plans to send out another round of stimulus checks despite the ongoing COVID-19 pandemic.

A petition calling lawmakers for monthly recurring payments of $2,000 is now on track to get 4.5 million signatures after previously meeting its signature goal of 3 million.

Representation. A COVID-19 stimulus check. Pixabay