Some tax professionals are urging clients to consider opting out of receiving new monthly payments of the child tax credit because they could end up having to pay back that money next filing season.
The American Rescue Plan enacted in March increased the benefit for 2021 and directed the IRS to deliver half of the amount that families are eligible for in checks beginning in July. The payments are worth up to $300 per month for each child under age 6, and up to $250 for each child ages 6 to 17.
Normally, parents would claim the credit as a ...