Posted on 07/22/2021 3:14:24 PM PDT by upchuck
Many parents were thrilled to have hundreds of dollars suddenly land in their bank accounts last week, as the Internal Revenue Service distributed the first of six monthly child tax credit payments.
This is the first time the child tax credit is being paid out on a monthly basis. When lawmakers beefed up the credit as part of the Democrats’ $1.9 trillion coronavirus relief package in the spring, they opted to provide half of it this year to help parents with their monthly expenses, including housing, food, clothing and school supplies. Families will get the other half when they file their 2021 tax returns next year.
But receiving the monthly payments could lead to some unwelcome surprises at tax time in the spring, particularly for parents in certain situations. They may be better off opting out of this year’s income stream via an IRS portal and receiving the credit as a lump sum when they file their 2021 taxes, which is how it’s usually paid.
Unlike the three rounds of stimulus checks that many Americans received during the pandemic, the monthly deposits are actually early payments of families’ estimated child tax credits for 2021. But the payments are based on 2020 or 2019 income and household size.
So if either of those change, parents could wind up receiving much smaller refunds than they expected – or even owing taxes – when they complete their 2021 returns next spring. That’s when they have to reconcile the monthly payments they already received with the actual amount of child tax credit they qualify for.
Lawmakers, however, protected lower-income parents from potential overpayments. Heads of households making $50,000 or less and joint filers with incomes of $60,000 or less will not need to repay any excess credits.
More at the link.
(Excerpt) Read more at cnn.com ...
The Government giveth, and the Government taketh away.
A Present and a Surprise from the Government
All government money comes with strings attached
Until they start to whine and then it will not be enforced.
Not exactly.
The people produce and the government taketh away. The government taketh and the government taketh.
Someone once said Government is but a necessary evil. I'm starting to wonder about the necessary part.
Bush started this with the retroactive tax payments of $300-ish.
a fine is a tax for doing bad
a tax is a fine for doing good...
My my.
As if there weren’t enough people on the dole. We must be nearing 70 percent of people dependent on the government. 5 years ago one of my relatives contacted me through facebook.. i was on the way to work. She flatly said she doesn’t know anyone over the age of 45 who works, they are on lifelong disability.
let us take care of your needs
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