Child Tax Credit

[Alcaus]

Correct. Again depends on income and how many kids but that will be true in most situations. Situation that will really suck explaining to someone:

Married couple with 4 kids under the age of 6 that makes 140k in 2020. Get raises and make 175k in 2021.

They would get $7,200 from monthly payments July - December. Normally they break even on their tax return. They would owe that entire $7,200 on the return.

Anyone with 4 kids under the age of 0-5 has enough problems. If they don't see a $7,200 bill coming they're going to freak.

Does that include the $50 phase out for every 1k over 150k?

I'm trying to understand how that works. Is that only for people who made more than 150k in 2020?

Why would they owe the entire amount back?

 

[Jim14510]

Why should you get a tax credit for having a child or owning a home? It doesn’t make any sense. Congrats on the welfare

The home part is to encourage people to buy homes. Not sure what the economic effect of buying vs renting is but that's why.

Credits for kids are part of the progressive tax code. If you have kids basic necessities cost you more than if you don't have a kid. You can ask why is the tax code progressive. Whatever anyone believes about that isn't going to change so no real point in that discussion.

 

[ThomOsborneMD]

Brb,,...

If you have a link handy, I’d appreciate it. This is all so fucking dumb.

 

[Jim14510]

Does that include the $50 phase out for every 1k over 150k?

I'm trying to understand how that works. Is that only for people who made more than 150k in 2020?

Why would they owe the entire amount back?

At 140k they would qualify for a tax credit of 14,400. They're advancing 50% of that so they'd get 7,200 July - December. Because of the increase of income to 175k they only qualify for a credit of 8,000. They've already received 7,200 of that 8,000. They got 8,000 credit on the 2020 return and broke even. Didn't owe anything and didn't have a refund. Now on the return they get 800 credit so they owe 7,200.

 

[Jim14510]

If you have a link handy, I’d appreciate it. This is all so fucking dumb.

Child Tax Credit Update Portal | Internal Revenue Service

The Child Tax Credit Update Portal is no longer available. You can no longer view or manage your advance Child Tax Credit Payments sent to you in 2021.

www.irs.gov

 

[Alcaus]

At 140k they would qualify for a tax credit of 14,400. They're advancing 50% of that so they'd get 7,200 July - December. Because of the increase of income to 175k they only qualify for a credit of 8,000. They've already received 7,200 of that 8,000. They got 8,000 credit on the 2020 return and broke even. Didn't owe anything and didn't have a refund. Now on the return they get 800 credit so they owe 7,200.

Ah ok, that would make sense.

Thanks

 

[HuskerPAC]

I got $167 deposited into my account today for my kid. What does that mean for me? Am I going to get stretched out in prison?

 

[Jim14510]

I got $167 deposited into my account today for my kid. What does that mean for me? Am I going to get stretched out in prison?

Likely

 

[Jim14510]

I got $167 deposited into my account today for my kid. What does that mean for me? Am I going to get stretched out in prison?

It also means you're credit that was $2,000 last year will be $1,000 this year.

 

[HuskerPAC]

It also means you're credit that was $2,000 last year will be $1,000 this year.

Bitches. I’m far too pretty for prison. Since you seem to be offering free advice do I need to change anything? Also had a 2nd child 8 days ago.

 

[HuskerPAC]

Correction, my wife had my 2nd child 8 days ago.

 

[Jim14510]

Correction, my wife had my 2nd child 8 days ago.

So you'll have 3,000 on the return assuming income doesn't drop low enough to get some more.

 

[Adolph Coors]

You will receive an advance payment as long as you are under 400k (married) and children 0-17.

I'm a little unclear on the age 17 thing. Just punched in 200k income and age 17 into a calculator and it said $2,000. I think it should only be $500.

we received $167 today. we have 1 child 18 months old. i didnt really want it but i didnt realize it was happening

 

[Jim14510]

we received $167 today. we have 1 child 18 months old. i didnt really want it but i didnt realize it was happening

I imagine most in here get the regular credit and not the extra. Just means you're getting it early. You farmers just pay with the tax return so really doesn't matter.

 

[Black5hirt]

Thanks Jim.

 

[That SOB Van Owen]

Doesn’t the W-4 automatically account for Child Tax Credit and adjust yore withholding accordingly? @Jim14510

 

[Jim14510]

Doesn’t the W-4 automatically account for Child Tax Credit and adjust yore withholding accordingly? @Jim14510

If you're looking for logic on the advance payments im not going to have a good answer for you.

 

[BIG TONE SOPRANO]

The most amazing part about this child tax credit thing, you have to be in the tier that pays the least amount of taxes possible. The only people that deserve it are the people in the 32% and higher tax bracket. Anybody below that basically gets the credit every month by not paying anything in

 

[BIG TONE SOPRANO]

Guy making $45K pays $1,800 in, gets refund for $7,130 after "tax credits". Guy making a million still pays $289,000 in, after hiding all income and committing several felony tax evasion hustles. Somehow, the only place where America views them as equals is in the voting booth?? Outside of that, they pay FAR different costs to support America. One is a liberal debit, one is a Republican credit.

 

[BIG TONE SOPRANO]

Half of half of the country treats our tax system like a penny slot. Penny in, penny in, penny in, $300 jackpot. Walk away