So, if the money needs be paid back, why given to the people in the first place? Specifically to those who can't afford it, pay it back. That is making the country into more debt and product companies are using this child credit as an excuse to raise products prices and create a terrible inflation that is taken the very little left over of my pay check.
no, there are protections for low income families and also it's not a loan. It depends on your taxable situation to determine if you have to pay it back.
People need to stop thinking of it as having to "pay it back". That's not what is happening. Let's just take a simple case. Let's say that every year you do your taxes and you take a child tax credit. At tax time, your refund is $3,000. This is what you normally get back. The child tax credit increased for 2021, but let's assume for the sake of this explanation that it's the same as it always was. For 2021, the IRS - anticipating this credit that you are going to have on your 2021 tax return - sends you $1,500 in monthly checks during 2021. When it comes time to do your taxes, you made the same amount of money, you get all the deductions and credits you normally get, and your refund is $3,000 like it always is. Except you *_already received_* $1,500 of it in those montly payments. So at tax time, your normal $3,000 refund is reduced down to $1,500. You are in the exact same spot you always were. You received $1,500 in monthly checks PLUS the $1,500 on your tax return for a total of the same $3,000 you always got. You just got half of it in the form of advanced monthly payments. When it comes to your 2021 tax return, the $1,500 your refund was reduced by is not you having to "pay it back"; it's simply money you ALREADY received. You end up in the exact same spot as you do every other year except instead of one big $3,000 payment at the end of the year, you only get $1,500 plus another $1,500 in monthly payments.
My ex and I switch back and forth on claiming our daughter on our taxes. He didn’t opt out of the advanced child tax credit (thinking it was similar to the stimulus) but it’s my year in 2021 (filing early 2022). How does that work? Can I not get the child tax credit now or?
My sons dad claimed him on taxes this year, I was getting the advance payments. I had to pay it all back out of my employers tax. So I got nothing in taxes this year 🙃
Hi Travis, what will be the scenario for married filing separately? My wife and I separated in 2021 and only have one dependent, she will be claiming out child in 2021 tax year.
If I have a court order that states my child mother and I rotate years and I carried her on my 2020 taxes and the tax credit came to my account but she’s going to carry our daughter for 2021 should I opt out or should I accept the payments
@@TravisSickle I have this same scenario, but the opposite. My ex-wife claimed our child in 2020, and is already receiving the advanced tax payments. The advance payment should technically be mine, and if she were to opt out then neither one of us would get the $1,800. If she opted out, then I would only get half in 2021, instead of the full $3,600, which I am technically owed. So, since she’s already received three of the payments, we agreed for her not to opt out and to simply pay me back, so that in the end I will receive the full $3,600. Because, she’ll pay me for $1800 going to her this year, and I’ll get the remaining $1800 next year when I file. That is to say, by her opting out, it robs me of $1,800 out of the full $3600 that I would otherwise receive for 2021. (remember, she received her full child tax credits in 2020, because we rotate years. 2021 is my year) This is an obvious flaw in the design of this advance tax credit, which doesn’t account for parents in separate households, who rotate tax years when claiming their children.
@ Anthony Houston have a look at my question to Travis, as it relates to your situation, which is the reverse of my scenario. I rotate years with my ex-wife, as well, and 2021 is my year to claim our child. She claimed our child in 2020, and has already received three payments in July, August, and September. Simply put, we agreed for her to continue receiving the payment, and she is forwarding the money to me. In 2021, I will file as usual and receive my remaining $1800 child tax credit. By opting out, the parent claiming the child in 2021 will only receive half of the child tax credit. When, in a single household, where the parents are married, they would receive the full amount, i.e., $3600 for children five and under. In other words, divorced/separated parents, who rotate tax years to claim their children, have to work around the flaw in this child credit tax advance. However, I do still wonder how this will effect my ex’s 2021 filing.
So if I didn't opt out and its his turn to file for 2021 what would be the best way to pay him back and make sure I save a receipt I don't want him to say I didnt pay him back
If you qualify for the child tax credit, you would simply take it on your 2021 return when you file your taxes. You reduce this credit by the amount you received in monthly installments during the 2021 tax year - in your case, you would reduce it by zero since you did not receive any payments, so you would take the full credit on your 2021 tax return.
If my sons father gets the monthly payment for him but I am going to claim my son at the end of the year will he have to pay the money back and will I get the full $3000 …
I’m assuming your not married to him and have no agreement that he will get the credit and you won’t. He will have to pay it back but not necessarily how you may be thinking. If he withholds too much on his paycheck then his refund would get reduced. It’s just a matter of his tax liability. Don’t worry about what he does. Just fill out your own taxes correctly.
My mother claimed my kids for 2020 tax year ages 5 and 3 her income is 24k. If she recieved the money will she have to pay back if I will be claiming them in 2021.
Is the advanced child tax taxable? And I’m wondering what if I make 140K before the advanced child tax credit and have 3 kids… would that count toward the total income at the end of the year?
If you qualify for child tax credit but haven't worked in 2021 and will not be filing a tax return next year will that person have to pay the child credit tax back next year?
I am a disabled veteran. I don't make much money at all and do not work for an employer. There is no withholding anything. I make a few thousand buck on a rental every year. What happens to poor people with this? No one answers this question.
if my gross income is 16,000 last year and I don't see it changing much will we have to pay it back I have 5 kids a 4 year old will be 5 in nov a 3 year old will be 4 in dec a 2 year old will be 3 in feb a 1 year old will be 2 in jan and a 7 month old will be 1 in nov
I have a question, to anybody that can answer. My ex-wife claimed our child in 2020, and I claim him in 2021. So, she has been receiving the advanced child tax credits, which technically I should be receiving, because they are for 2021- the year I get to claim him. When I file in 2021, I will claim our child. So, what we agreed to do since she already claimed him in 2020, she is paying me back, the advanced child tax credit payments from the IRS. Is this the right way to go about that scenario? How will this effect my ex’s tax filing for 2021, since we have agree for her to forward, i.e., pay me back, the child credit tax advance that she has already been receiving?
*investing is how to create wealth, I started investing from the pandemic crash 👍*
Invest in bitcoin, gold , sliver,buy stock,forex market ,commodities .just invest and save yourself.
Gold + bitcoin are the place to be now (and unitl the dust settles)
Nice one , I tell my friends everyday . it's good to save money but gotta that investment sprite of you if really want financial freedom.
What if you don't know how to trade any of these ? I mean ,I see your point.some people have the money and are willing to invest, is where to .
@@stanleynewton7895 Fact 👏
I just paid back every dime
didn't qualify or just don't want it?
On what line on my 1040 does it show the amount I paid back for the child tax credit?
So, if the money needs be paid back, why given to the people in the first place? Specifically to those who can't afford it, pay it back.
That is making the country into more debt and product companies are using this child credit as an excuse to raise products prices and create a terrible inflation that is taken the very little left over of my pay check.
no, there are protections for low income families and also it's not a loan. It depends on your taxable situation to determine if you have to pay it back.
People need to stop thinking of it as having to "pay it back". That's not what is happening.
Let's just take a simple case. Let's say that every year you do your taxes and you take a child tax credit. At tax time, your refund is $3,000. This is what you normally get back. The child tax credit increased for 2021, but let's assume for the sake of this explanation that it's the same as it always was. For 2021, the IRS - anticipating this credit that you are going to have on your 2021 tax return - sends you $1,500 in monthly checks during 2021. When it comes time to do your taxes, you made the same amount of money, you get all the deductions and credits you normally get, and your refund is $3,000 like it always is. Except you *_already received_* $1,500 of it in those montly payments. So at tax time, your normal $3,000 refund is reduced down to $1,500. You are in the exact same spot you always were. You received $1,500 in monthly checks PLUS the $1,500 on your tax return for a total of the same $3,000 you always got. You just got half of it in the form of advanced monthly payments. When it comes to your 2021 tax return, the $1,500 your refund was reduced by is not you having to "pay it back"; it's simply money you ALREADY received. You end up in the exact same spot as you do every other year except instead of one big $3,000 payment at the end of the year, you only get $1,500 plus another $1,500 in monthly payments.
My ex and I switch back and forth on claiming our daughter on our taxes. He didn’t opt out of the advanced child tax credit (thinking it was similar to the stimulus) but it’s my year in 2021 (filing early 2022). How does that work? Can I not get the child tax credit now or?
My sons dad claimed him on taxes this year, I was getting the advance payments. I had to pay it all back out of my employers tax. So I got nothing in taxes this year 🙃
Same question I didn't opt out for my 6 year old so I have to pay back the upfront money I got for six months
Thank you for explaining!
Hi Travis, what will be the scenario for married filing separately? My wife and I separated in 2021 and only have one dependent, she will be claiming out child in 2021 tax year.
What if I use to get unemployment and don’t work right now , is it free for me ?
Possibly, goto the portal and apply
If I have a court order that states my child mother and I rotate years and I carried her on my 2020 taxes and the tax credit came to my account but she’s going to carry our daughter for 2021 should I opt out or should I accept the payments
Out since it’s an advance on 2021 taxes.
@@TravisSickle I have this same scenario, but the opposite. My ex-wife claimed our child in 2020, and is already receiving the advanced tax payments. The advance payment should technically be mine, and if she were to opt out then neither one of us would get the $1,800. If she opted out, then I would only get half in 2021, instead of the full $3,600, which I am technically owed. So, since she’s already received three of the payments, we agreed for her not to opt out and to simply pay me back, so that in the end I will receive the full $3,600. Because, she’ll pay me for $1800 going to her this year, and I’ll get the remaining $1800 next year when I file. That is to say, by her opting out, it robs me of $1,800 out of the full $3600 that I would otherwise receive for 2021. (remember, she received her full child tax credits in 2020, because we rotate years. 2021 is my year)
This is an obvious flaw in the design of this advance tax credit, which doesn’t account for parents in separate households, who rotate tax years when claiming their children.
@ Anthony Houston have a look at my question to Travis, as it relates to your situation, which is the reverse of my scenario. I rotate years with my ex-wife, as well, and 2021 is my year to claim our child. She claimed our child in 2020, and has already received three payments in July, August, and September. Simply put, we agreed for her to continue receiving the payment, and she is forwarding the money to me. In 2021, I will file as usual and receive my remaining $1800 child tax credit.
By opting out, the parent claiming the child in 2021 will only receive half of the child tax credit. When, in a single household, where the parents are married, they would receive the full amount, i.e., $3600 for children five and under.
In other words, divorced/separated parents, who rotate tax years to claim their children, have to work around the flaw in this child credit tax advance. However, I do still wonder how this will effect my ex’s 2021 filing.
So if I didn't opt out and its his turn to file for 2021 what would be the best way to pay him back and make sure I save a receipt I don't want him to say I didnt pay him back
I have received any of stimulus checks for child credit tax checks how do I get mines
If you qualify for the child tax credit, you would simply take it on your 2021 return when you file your taxes. You reduce this credit by the amount you received in monthly installments during the 2021 tax year - in your case, you would reduce it by zero since you did not receive any payments, so you would take the full credit on your 2021 tax return.
I owe IRS, I’m currently in a payment plan with them and I’m not sure if I should opt out or not ? Any help ?
If my sons father gets the monthly payment for him but I am going to claim my son at the end of the year will he have to pay the money back and will I get the full $3000 …
It will come down to whoever is eligible and claims him. It’s irrelevant what your son’s father does.
@@TravisSickle nothing my son stays with me
I’m assuming your not married to him and have no agreement that he will get the credit and you won’t. He will have to pay it back but not necessarily how you may be thinking. If he withholds too much on his paycheck then his refund would get reduced. It’s just a matter of his tax liability. Don’t worry about what he does. Just fill out your own taxes correctly.
Thank you…
Can you apply for a child tax credit if you’re not the head of the family?
If you are also a dependent on someone else’s tax return….no.
I’m so confused beside the child tax credit is it relate to the tax refund for the year 2020 because i haven’t receive my refund yet.
no this refund is an advance from 2021
My mother claimed my kids for 2020 tax year ages 5 and 3 her income is 24k. If she recieved the money will she have to pay back if I will be claiming them in 2021.
Maybe 👀
It’s not just who claims…but also qualifies. If someone claims and is not entitled then that’s their problem. Yes they will have to pay it back.
Is the advanced child tax taxable? And I’m wondering what if I make 140K before the advanced child tax credit and have 3 kids… would that count toward the total income at the end of the year?
Wondering if it brings me over, I should opt out but then would I get the complete amount if I wait until the 2021 return? 😵💫
I was wondering what does pending mean ?
We back it back in inflation
If you qualify for child tax credit but haven't worked in 2021 and will not be filing a tax return next year will that person have to pay the child credit tax back next year?
I am a disabled veteran. I don't make much money at all and do not work for an employer. There is no withholding anything. I make a few thousand buck on a rental every year. What happens to poor people with this? No one answers this question.
I won’t lol
if my gross income is 16,000 last year and I don't see it changing much will we have to pay it back I have 5 kids a 4 year old will be 5 in nov a 3 year old will be 4 in dec a 2 year old will be 3 in feb a 1 year old will be 2 in jan and a 7 month old will be 1 in nov
It’s not a loan. It’s tax credits you’re getting in advance.
@@TravisSickle thank you
I have a question, to anybody that can answer. My ex-wife claimed our child in 2020, and I claim him in 2021. So, she has been receiving the advanced child tax credits, which technically I should be receiving, because they are for 2021- the year I get to claim him. When I file in 2021, I will claim our child. So, what we agreed to do since she already claimed him in 2020, she is paying me back, the advanced child tax credit payments from the IRS.
Is this the right way to go about that scenario?
How will this effect my ex’s tax filing for 2021, since we have agree for her to forward, i.e., pay me back, the child credit tax advance that she has already been receiving?