| CURRENT EVENTS I don't have any kids, but this gets me. A check from the treasury for Child Tax Credit advance?

[TerryP]

Forgive my lack of knowledge on this...went down a small rabbit hole this morning reading a little about these credits.

If I'm reading this whole thing correctly, this comes out of what they were eligible for on their 2021 return, right? These folks are getting money today, basically a loan, they'll have to repay come April of '22?

 

[XXL TideFan]

No. Should not get the child credit when they next file. They just got paid OPM early. I’ve never gotten it before but having always prepared my own taxes that is my understanding of it.

 

[Rolltide24]

There’s going to be a ton of folks crying when the tax man comes in early 2022. And folks’ refunds are thousands smaller than in the past. There’s info out there noting that most of this is an early distribution of the credit, but a lot of the folks that will be getting that money won’t pay attention. Anyone want to be some politicians try in January to give folks their normal credit again on their tax returns? I wouldn’t put it past them these days. A few people cry so the nation bends over backwards to comfort them even though they didn’t read…

Mark my word, there will be lots of wailing and gnashing of teeth in January and February.

 

[rocknthefreeworld]

These folks are getting money today, basically a loan, they'll have to repay come April of '22?

Usually only repay if they become ineligible for the child tax credit after they have received it. This is basically an advance payment of the credit they would normally receive next year. They could also have to repay if they are not taking enough taxes out and the credit they don't get when filing puts them owing due to that.

 

[rocknthefreeworld]

Anyone want to be some politicians try in January to give folks their normal credit again on their tax returns?

I fully expect that they will do that next year at some point. Look at what they did for those who got taxed on the unemployment last year.

Exclusion of up to $10,200 of Unemployment Compensation for Tax Year 2020 Only | Internal Revenue Service

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan Act enacted on March 11, 2021, allows you to exclude from income up to $10,200 of unemployment compensation paid in 2020. This means you don’t have to pay tax on unemployment compensation of up to...

www.irs.gov

 

[TerryP]

Usually only repay if they become ineligible for the child tax credit after they have received it.

I didn't word that correctly. By "repay" I was thinking about the credits lost on their returns.

 

[rocknthefreeworld]

I didn't word that correctly. By "repay" I was thinking about the credits lost on their returns.

Yep. You have the option of taking it in payments up front or waiting until next year to get it on your return.

 

[TerryP]

Yep. You have the option of taking it in payments up front or waiting until next year to get it on your return.

For lack of a better way to put this, "pay day advance."

 

[rick4bama]

Yes it will be paid back with the Child Tax Credit. I told my granddaughter that if you take it now you will not get it next years.