Child Tax Credit (1 Viewer)

[raynmanas]

I agree about the deficit. The reduced credit in 2021 could either reduce a refund or create a liability. It's problematic that a person who might underwithhold and have a liability to begin with would increase that deficit by accepting this upfront money.

This is sure to cause some heartache. But hey if you're in financial distress and the government offers you an interest free loan to kick the can down the road a year, would you accept it or opt out?

People who need to feed their families and keep a roof over there heads may not be complaining... at least not until they file their taxes next year and discover there were consequences to the decision (or lack of decision).

you are right. like i said, this probably isn't going to be an issue for someone like me anyway, even if they do get hit with an extra tax bill come april. really, it's just an extra headache that i had to deal with and is now gone. i hope it's a boon for those who really need it.

 

[timinater]

Sounds complicated. Think how much work (PAIN) is being created by just not taxing at the source, or even easier, reducing the payment by x% and making it tax free?

 

[Himewad]

Sounds complicated. Think how much work (PAIN) is being created by just not taxing at the source, or even easier, reducing the payment by x% and making it tax free?

when the government gets involved, it's ALWAYS over-complicated

 

[Steppenwolf]

when the government gets involved, it's ALWAYS over-complicated

On the contrary, I would argue that it's oversimplified

 

[Himewad]

Simple-minded, maybe

 

[Ellasdaddy]

My wife and I opted out last weekend and I think the process was pretty smooth. I didn’t know each of us had to opt out when I began so I did my part on my laptop. It was clunky but fine. When I discovered we both had to do this, my wife used her phone and flew through it in about 3 mins. Of course, all of this is to agree that all this shouldn’t have even been a “process”, but to say more is to get clearly political.

I did read and hear that this is not taxed as income, just an advance on your 2021 credit based on your 2020 return. For us, our income has dropped considerably since we filed in February and brings us to a bracket where we’ll get the maximum credit next filing year, so it only made sense to opt out and take the max next year. We’re also dreading our overall tax bill again, having moved from NYC to NJ and still working in NYC, so any and all credits next year will be helpful in avoiding liability.

 

[Frogzilla]

Got a check I didn’t want (I already owe enough next April as it is). If I don’t cash it is it effectively same as opting out?
Or do I need to pay it back next April either way