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Child Tax Credit

CooterBrown

By CooterBrown
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CooterBrown

CooterBrown 17913

Posted
Posted

I noticed a deposit in my checking account tagged as IRS CTC.

 

I definitely don’t fall within the income limits for this so I looked it up. Looks like they’re just giving advances on the child tax credit to pretty much everyone with dependent children. If you don’t qualify when you do your 2021 taxes (joint income over $150k), you’ll have to pay it all back.

 

What a clusterfuck. You can opt out of receiving the monthly advance payments so it’s not tacked in to your tax bill in April. Thanks Obama.

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The Dog

The Dog 43807

Posted
Posted (edited)
34 minutes ago, CooterBrown said:

 

I noticed a deposit in my checking account tagged as IRS CTC.

 

I definitely don’t fall within the income limits for this so I looked it up. Looks like they’re just giving advances on the child tax credit to pretty much everyone with dependent children. If you don’t qualify when you do your 2021 taxes (joint income over $150k), you’ll have to pay it all back.

 

What a clusterfuck. You can opt out of receiving the monthly advance payments so it’s not tacked in to your tax bill in April. Thanks Obama.

 

It's based on your 2020 taxes IIRC.

Nice humblebrag regardless though. ;)

Edited by The Dog
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The Dog

The Dog 43807

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Posted
1 minute ago, CooterBrown said:


Didn’t qualify for it then either.

However, I did have to do a paper return because someone had filed under my SSN. Maybe that was it?

Turn the tables and file as them and take the dough. 

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pearlandhorn

pearlandhorn 3269

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I opted out as we want the entire credit when I go to file in 2022 (if we even get a credit at all).  Still got payment as the deadline to not get a payment was July 2nd.  Did a little bit more digging and apparently both you and your spouse have to opt out separately.  It took me an hour or so to opt out as there was a queue to verify my identity via video call with an IRS contractor.  Such a pain in the ass.

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Ojo Rojo

Ojo Rojo 1906

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This is dumb.  We got it today too, but it's an advance on a credit for which we don't qualify.  It'll just get deducted from whatever refund we would've gotten so I won't have to write the IRS a check, but still.

My wife thinks this is a good thing.  I should put that in the Stupid Wives thread.

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'stache

'stache 21774

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It's based on last year's tax return. If you didn't qualify and still got it, might take a deeper look into it, or go opt out of the advance payments. I actually fell just into eligibility last year and don't expect to exceed it this year, so I'm keepin my money and going crazy! Whats the best bottle of booze I can get for $550?

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Longhorn_Fan68

Longhorn_Fan68 33843

Posted
Posted
1 hour ago, 'stache said:

It's based on last year's tax return. If you didn't qualify and still got it, might take a deeper look into it, or go opt out of the advance payments. I actually fell just into eligibility last year and don't expect to exceed it this year, so I'm keepin my money and going crazy! Whats the best bottle of booze I can get for $550?

get a bottle of Garrison Bros and then fly somewhere fun. fuck spending that much on a bottle

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CooterBrown

CooterBrown 17913

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This is dumb.  We got it today too, but it's an advance on a credit for which we don't qualify.  It'll just get deducted from whatever refund we would've gotten so I won't have to write the IRS a check, but still.
My wife thinks this is a good thing.  I should put that in the Stupid Wives thread.

I always owe around $6K out of pocket. Last thing I want is this fucking $3K added on to it.
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Ojo Rojo

Ojo Rojo 1906

Posted
Posted
13 minutes ago, WBT said:

Y'all are complaining about interest free loans?

It's not a huge deal, otherwise I would have opted out.  I don't like having debt that I don't want created for me, interest free or otherwise.  My main issue with it is that there are a lot of people who are going to think this is free money, when it's not.

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Js1

Js1 85110

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Posted
12 minutes ago, Nolacycling said:

Is there an end date to this or is this forever dole?

Only for 2021 but it may end up in the reconciliation bill as part of the American Families Plan to make it last a few more years.

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Guest Lobo

Guest Lobo

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Posted
11 minutes ago, Gatorubet said:

Trump woulda had them mailed with his name on the checks

Trump would put his name on the check and the child's birth certificate.  

"Excuse me, are you the charge nurse?  What is the black sharpie situation in this ward?"  

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Js1

Js1 85110

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Posted
14 minutes ago, Gatorubet said:

Trump woulda had them mailed with his name on the checks

I wouldn't be surprised if a letter follows in the mail with Biden's name on it.   Did the same for the 2021 stimulus. 

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Dahobbs

Dahobbs 17447

Posted
Posted
15 hours ago, CooterBrown said:

 

I noticed a deposit in my checking account tagged as IRS CTC.

 

I definitely don’t fall within the income limits for this so I looked it up. Looks like they’re just giving advances on the child tax credit to pretty much everyone with dependent children. If you don’t qualify when you do your 2021 taxes (joint income over $150k), you’ll have to pay it all back.

 

What a clusterfuck. You can opt out of receiving the monthly advance payments so it’s not tacked in to your tax bill in April. Thanks Obama.

 

The $150k joint income limit is for the expanded tax credit, not the original $2,000 per child credit. Married couples with an AGI less than $400,000 would still receive the latter $2,000 per child credit (phasing out at higher incomes). The additional $1,000 (children 6-17) to $1,600 (under 6) per child phases out completely at $440,000 (married AGI) I think, but anything under that and you would still qualify for some part of the additional credit.  So, you may actually still qualify (if not, good for you). The information out there is confusing because of the mishmash of what should be two separate credits.  

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CooterBrown

CooterBrown 17913

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51 minutes ago, Dahobbs said:

The $150k joint income limit is for the expanded tax credit, not the original $2,000 per child credit. Married couples with an AGI less than $400,000 would still receive the latter $2,000 per child credit (phasing out at higher incomes). The additional $1,000 (children 6-17) to $1,600 (under 6) per child phases out completely at $440,000 (married AGI) I think, but anything under that and you would still qualify for some part of the additional credit.  So, you may actually still qualify (if not, good for you). The information out there is confusing because of the mishmash of what should be two separate credits.  

Thanks for the clarification.

pulp fiction check out the big brain on brett GIF

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Sbbruin

Sbbruin 21737

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6 hours ago, 'stache said:

It's based on last year's tax return. If you didn't qualify and still got it, might take a deeper look into it, or go opt out of the advance payments. I actually fell just into eligibility last year and don't expect to exceed it this year, so I'm keepin my money and going crazy! Whats the best bottle of booze I can get for $550?

I just noticed I got it too.  What a debacle.  I'm trying to opt out, and the fucking system is a disaster.  And no, not humblebragging, but no, I don't fall under the limit.  So I have to set this BS aside and claim it on my taxes.  OR... take it to Vegas and double that shit, then double it again.  IT'S FOOLPROOF!!!

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PhillyD

PhillyD 1257

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Posted (edited)

I am legit confused.  I checked my account and got money but will be pissed if I have a big tax bill in April.  Trump fucked me last time with his tax reform and I ended up paying more due to his "tax cuts."  Is this the same situation?  

Edited by PhillyD
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Covri

Covri 6231

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Posted
14 minutes ago, Sbbruin said:

I just noticed I got it too.  What a debacle.  I'm trying to opt out, and the fucking system is a disaster.  And no, not humblebragging, but no, I don't fall under the limit.  So I have to set this BS aside and claim it on my taxes.  OR... take it to Vegas and double that shit, then double it again.  IT'S FOOLPROOF!!!

By them sending it to you wouldn’t that mean that based on your most recently filed taxes you do qualify for it? What are the ages of your kids and how much did you get? It’s supposed to decrease incrementally after the first 150k joint filed family up to like 400k or so and then after that you don’t get anything.

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Covri

Covri 6231

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4 minutes ago, PhillyD said:

I am legit confused.  I checked my account and got money but will be pissed if I have a box tax bill in April.  Trump fucked me last time with his tax reform and I ended up paying more die to his "tax cuts."  Is this the same situation?  

My understanding is it’s just an advance on half of the child tax credit so you’ll just get less back on next year’s tax return. People are going to gripe when their return is smaller but they’ll have forgotten they got part of it early over 6 months this year.

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PhillyD

PhillyD 1257

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1 minute ago, Covri said:

My understanding is it’s just an advance on half of the child tax credit so you’ll just get less back on next year’s tax return. People are going to gripe when their return is smaller but they’ll have forgotten they got part of it early over 6 months this year.

Well yeah, this sucks then.  I come out pretty much even in April.  I either pay less than $200 or get a refund of less than $200.  This feels like I had better prepare to pay a big bill. 

Glad the government is here once again to help.

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DonkeyCigars

DonkeyCigars 144

Posted
Posted (edited)

Yea, not sure what the benefit of this is. It's 6 one way and half a dozen the other for those who qualify, right? It's not in addition to or growing the pie, it's just redistributed timelines.

The benefit is I guess gaining interest on it for 6 months before paying it back? Getting smaller monthly increments so you are less likely to blow it on a Miami Spring Break vacation in one purchase and more apt to spend it on things you need in life, the kids back to school clothes and supplies and repairs and paying down debt?

Were people asking for this? If so, how/why? I'm honestly not sure how this is a benefit or a better situation than getting a lump sum in March or April like they currently do rather than splitting it up unless I'm not understanding it fully and maybe there is free money in addition to in there somewhere...otherwise this seems like a false benefit in a rearranging the same chairs on the deck of the Titantic and will probably backfire if people don't know that is what this is and will be surprised when their lump sum isn't so lumpy in the Spring.

Edited by DonkeyCigars
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Covri

Covri 6231

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4 minutes ago, PhillyD said:

Well yeah, this sucks then.  I come out pretty much even in April.  I either pay less than $200 or get a refund of less than $200.  This feels like I had better prepare to pay a big bill. 

Glad the government is here once again to help.

It’s still not really clear though because they bumped up the child tax credit as well from the sounds of it and that’s part of this early payment.

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Covri

Covri 6231

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Posted
1 minute ago, DonkeyCigars said:

Yea, not sure what the benefit of this is. It's 6 one way and half a dozen the other for those who qualify, right? It's not in addition to or growing the pie, it's just redistributed timelines.

The benefit is I guess gaining interest on it for 6 months before paying it back? Getting smaller monthly increments so you are less likely to blow it on a Miami Spring Break vacation in one purchase and more apt to spend it on things you need in life, the kids back to school clothes and supplies and repairs and paying down debt?

Were people asking for this? If so, how/why? I'm honestly not sure how this is a benefit or a better situation than getting a lump sum in March or April like they currently do rather than splitting it up unless I'm not understanding it fully and maybe there is free money in addition to in there somewhere...otherwise this seems like a false benefit in a rearranging the same chairs on the deck of the Titantic and will probably backfire if people don't know that is what this is and will be surprised when their lump sum isn't so lumpy in the Spring.

It’s giving money to people now that may need it immediately due to the pandemic instead of making them wait until next spring. If you don’t need it just leave it savings or opt out I guess. It’s really not for people making six figures plus, median family income of 4 is like 50k in this country and they may want money now versus later.

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Sbbruin

Sbbruin 21737

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19 minutes ago, Covri said:

By them sending it to you wouldn’t that mean that based on your most recently filed taxes you do qualify for it? What are the ages of your kids and how much did you get? It’s supposed to decrease incrementally after the first 150k joint filed family up to like 400k or so and then after that you don’t get anything.

I have 2 kids 15 and 17 and filing jointly we make over the amount above (don't want to paycheck stub it here).  We got $333.

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Covri

Covri 6231

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3 minutes ago, Sbbruin said:

I have 2 kids 15 and 17 and filing jointly we make over the amount above (don't want to paycheck stub it here).  We got $333.

Lol I have two kids under 6 and made between 150k and 400k jointly and we got $333 as well. That’s not a good sign…

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Sbbruin

Sbbruin 21737

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1 minute ago, Covri said:

Lol I have two kids under 6 and made between 150k and 400k jointly and we got $333 as well. That’s not a good sign…

I just moved it into a savings account and will plan on adding it to the next tax bill.

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Dahobbs

Dahobbs 17447

Posted
Posted
2 minutes ago, Covri said:

Lol I have two kids under 6 and made between 150k and 400k jointly and we got $333 as well. That’s not a good sign…

If you make under 400k, then don't worry about it. Again, the majority of the credit doesn't even start to phase out until 400k. See my post above for more of an explanation. 

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Covri

Covri 6231

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1 minute ago, Sbbruin said:

I just moved it into a savings account and will plan on adding it to the next tax bill.

We’re just going to put it in the kids savings accounts. Like I mentioned in another post it’s mainly for those who need it and can’t wait on it till spring 2022z

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Covri

Covri 6231

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Posted
2 minutes ago, Dahobbs said:

If you make under 400k, then don't worry about it. Again, the majority of the credit doesn't even start to phase out until 400k. See my post above for more of an explanation. 

Yeah it’s confusing exactly who will get what, but I’ll not worried about any of it. 

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PhillyD

PhillyD 1257

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Posted
17 minutes ago, Sbbruin said:

I have 2 kids 15 and 17 and filing jointly we make over the amount above (don't want to paycheck stub it here).  We got $333.

 

13 minutes ago, Covri said:

Lol I have two kids under 6 and made between 150k and 400k jointly and we got $333 as well. That’s not a good sign…

Same situation as both of you except I got $350.  Does that qualify as about tree fiddy?

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washparkhorn

washparkhorn 9935

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Posted

I am sorry it isn't working out for some of you. 

But there is a silver lining, which benefits our society and economy:

  • The plan includes a $100 billion expansion of the child tax credit program, which will infuse family budgets with up to $1,600 more per child, and will allow even the lowest-income families to benefit.
  • Under the previous child tax credit, families got up to $2,000 off their tax bills per child, but the many poor families got a smaller benefit — or nothing at all.
  • Now, even the poorest families who do not make enough to pay income taxes will qualify.
    • Families with citizen children will now get $3,000 per child, and $3,600 for children under the age of six.
    • Crucially, the benefit will be split up and paid out in monthly increments, with the money set to go out to families via checks, debit cards or direct deposits beginning July 15.
  • For some families, the money could be transformative.
  • The colossal and historic investment is expected to cut child poverty in half, according to an analysis from Columbia University’s Center on Poverty and Social Policy.

https://www.seattletimes.com/nation-world/nation/the-new-child-tax-credit-could-lift-more-than-5-million-kids-out-of-poverty-can-it-help-them-learn-too/  (it's a longish read, but worthwhile. It's a brunch-worthy topic to explore with friends, because it is an accomplishment to reduce child poverty.)  

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