Some taxpayers may be in for a surprise when filing their taxes with repayment of the child tax credit. The advanced child tax credit was not free money but acted more of an advance to be paid to eligible families earlier than when filing tax return. So why will some taxpayers need to pay it back? Well, many reasons but the short answer is if the taxpayer owes a tax liability in excess of the credit.
Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult a tax, legal and accounting advisors before engaging in any transaction or submitting any IRS form.
Ramin Mohammad
Ramin Mohammad is a lawyer and CPA with over 15 years of experience including working in audits, teaching, and in big law. Ramin helps clients on both personal and business related tax issues ranging from a multitude of practice areas including tax structuring, planning and cross jurisdictional taxes. His client-base expands throughout the US and overseas offering tax consulting, tax planning and tax preparation.
