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Minding my own business at a Tampa store and hit up for charity at check-out
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The advance credits will be based on 2020 tax returns, or the most recent year the IRS has on file. Technically, though, the parent claiming the dependents for 2021 should get the payments, which can complicate things if the parents alternate years.
If Parent A claimed the child in 2020 but Parent B will claim him or her in 2021, Parent A will still get the advance payments, which means they may want to go ahead and waive them now, says Janet Holtzblatt, senior fellow at the Urban-Brookings Tax Policy Center.
Otherwise, there s a risk that if you ll have to repay it next tax season, Holtzblatt says. That depends on income: Individuals making less than $40,000 ($60,000 for couples filing jointly) who receive an overpayment of the credit will not need to repay it.