Frequently Asked Questions

No, one of the conditions of your installment agreement is that any refund due to you, the IRS will automatically apply against the taxes you owe. Because the refund isn't applied towards your regular monthly payments, continue making your installment agreement payments as scheduled until you pay your liability, including accrued penalties and interest in full.

Generally, to qualify for the Head-of-Household filing status, you must have a qualifying child or dependent. However, a custodial parent may be able to claim the Head-of-Household filing status with a qualifying child even if he or she released a claim to exemption for that child.

No, there is no provision in the law that would require individuals who qualified based upon their 2020 or 2019 tax returns to pay back all or part of the payment they received.

No, the Third Economic Impact Payment (EIP) is NOT taxable income and will not be reported on your 2021 federal tax return. The EIP also will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs.

If you were claimed as a dependent in 2020, you are not eligible for the $1,400 Third Economic Impact Payment. But if nobody will claim you as a dependent for 2021, and you are otherwise eligible, you can claim the $1,400 2021 Recovery Rebate Credit. You must file a 2021 tax return to claim this credit.

The Advance Child tax Credit Payments were based upon information on your 2020 or 2019 federal tax returns. Family and life situations can be fluid throughout a given year. Here are a few examples:

If you are required to repay Advance Child tax Credit payments, you may qualify for Repayment Protection which can protect you for part or all of the excess amount. This Repayment Protection is based on your filing status and your AGI (Adjusted Gross Income) on your 2021 federal tax return.