I’ve been hearing that the government plans to pay out approximately $300 per child to most American parents. This is actually, I thought, the child tax credit we get every year, but simply paid out to us monthly.
If that is the case, does this mean I will owe more tax in 2022(like, the credit was paid out in advance and now I gotta pay it back by not receiving the credit)?
Or is this something different? I doubt the government would just come up with another full-on bailout just for parents, one that does not have to be paid back in some form.
It’s $300 for children 0-5 for $3600 total. Or $250/$3000 for 6-17.
It’s an advance on the child tax credit which was also raised for this year at least and is not taxable. So like the “stimulus” payments, if you don’t get it early (but are otherwise eligible) then you’d get it with filing your taxes.
Great point, but do you know if his concern is legitimate? He may end up with $500 less on his tax credit? Was my understanding right that only the new amount is being refunded and the original tax “credit” is still there for tax-filing?
Edit: This barely affects me, by the way. I have kids, but I calculate my withdrawal for taxes to be very close to the right amount. I shoot for no interest free loans for the government. I’m close most years.
It’s possible, but the tax credit doubled from $1000 to $2000 in, iirc, 2017 or 2018, so I’d be shocked if he’d really calculated it out that close.
I recently saw a Facebook Forward that seemed to be telling people there was NO increase, and they should fill out a request to delay all payments, because “most people wouldn’t be disciplined enough to save”. Which is silly, because honestly, the "wait for a big check and blow it all on consumer electronics " is not a better plan.
There are political implications which are beyond the scope of this forum.