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Getting rid of these child tax credits all at once is brutal
Posted on 2/1/23 at 3:04 pm
Posted on 2/1/23 at 3:04 pm
I knew they were getting rid of some of the tax credits from last year, we got the Refundable Child Care Credit $5,500 and the Additional Child Tax Credit $5,400 which are now both gone I guess.
We paid right at $20k last year for preschool, and I am reviewing form 2441 which calculates that. In field 27 it says $6000 allowance for 2 kids and then subtracts field 12 dependent care benefits of $5000 (which is what I did pretax from my job). then multiplying by .20 to get a $200 deduction.
I've never not gotten a refund with kids, that's a tough pill to swallow, paying $20k for childcare, at least we got some back from it in the past. We went from a $7700 refund to owing $2900.
I expect to get downvotes, but man I had no idea how bad it was going to be.
We paid right at $20k last year for preschool, and I am reviewing form 2441 which calculates that. In field 27 it says $6000 allowance for 2 kids and then subtracts field 12 dependent care benefits of $5000 (which is what I did pretax from my job). then multiplying by .20 to get a $200 deduction.
I've never not gotten a refund with kids, that's a tough pill to swallow, paying $20k for childcare, at least we got some back from it in the past. We went from a $7700 refund to owing $2900.
I expect to get downvotes, but man I had no idea how bad it was going to be.
11
Posted on 2/1/23 at 3:07 pm to PistolPete45
Good, I shouldn't be burdened with the cost of your kids.
Posted on 2/1/23 at 3:09 pm to PistolPete45
I thought the additional child care credit is still around. Are you kids now older than 16?
Posted on 2/1/23 at 3:13 pm to PistolPete45
3 kids here and my refund went up this year. I was expecting a big change in the negative direction but it didnt happen.
Posted on 2/1/23 at 3:23 pm to UltimaParadox
Nope, 3 and 5, They would be in public school if they were old enough.
Posted on 2/1/23 at 3:47 pm to PistolPete45
I have kids and haven't gottent the credit in about 3-4 years. It stinks.
Posted on 2/1/23 at 3:53 pm to PistolPete45
It was only last year that the additional credits were in place; it just reset to how it was in 2020. Those were just a gift/vote buy for 2021.
Posted on 2/1/23 at 3:57 pm to PistolPete45
quote:
Getting rid of these child tax credits all at once is brutal
You act like the credits last year were the norm and the credits this year are not. Yet the opposite is true.
They shouldn’t have to phase you out of getting free money. Be thankful you got what they gave you last year
This post was edited on 2/1/23 at 3:58 pm
Posted on 2/1/23 at 3:58 pm to Buck_Rogers
quote:
Good, I shouldn't be burdened with the cost of your kids.
Reminds of old saying
Plant baw tells boss needs raise bc gf is pregnant
Did I f her?
Posted on 2/1/23 at 4:01 pm to thelawnwranglers
that’s good 
Posted on 2/1/23 at 11:50 pm to PistolPete45
Still got that P-EBT tho.
Posted on 2/2/23 at 6:00 am to PistolPete45
Unless your AGI is over 400000, you should still be getting a credit of 2k per kid.
Our oldest turns 17 this year so need to make adjustments to withholding.
Our oldest turns 17 this year so need to make adjustments to withholding.
Posted on 2/2/23 at 6:34 am to Buck_Rogers
quote:
Good, I shouldn't be burdened with the cost of your kids.
Children are important to keep the world going. If everyone took your stance, humanity would cease to exist. Having children is a necessary service for this world and should be eased by the government to make it more viable for families with greater resources. That’s best done in the form of large tax deductions, currently done in tax credits though.
If you made comparable deductions to equal in credit to the actual amount of credits, it would stop rewarding families in poverty from piling up kids and would promote successful families procreating
Posted on 2/2/23 at 6:57 am to PistolPete45
Biden is evening out the playing field for people of nogf
It’s about diversity equity and inclusion
It’s about diversity equity and inclusion
Posted on 2/2/23 at 7:21 am to Upperdecker
If tax credits/deductions were your motivation to have kids, you are going to be the world’s shittiest parent.
This post was edited on 2/2/23 at 7:23 am
Posted on 2/2/23 at 7:35 am to Weagle25
Losses loom larger than gains.
The psychology of getting a refund is interesting. The net amount paid is identical but those getting refunds act like they pulled a fast one on the government…when they just gave an interest free loan.
Child tax credits should do nothing to influence procreation. Whether they should be a benefit at all…well, that is just politics.
The psychology of getting a refund is interesting. The net amount paid is identical but those getting refunds act like they pulled a fast one on the government…when they just gave an interest free loan.
Child tax credits should do nothing to influence procreation. Whether they should be a benefit at all…well, that is just politics.
Posted on 2/2/23 at 7:44 am to Boss
Well looks like it shifted to a different line item than last year after looking at it.
I guess I need to change my witholdings so I don't owe again
I guess I need to change my witholdings so I don't owe again
Posted on 2/2/23 at 11:00 am to Weagle25
quote:
If tax credits/deductions were your motivation to have kids, you are going to be the world’s shittiest parent.
That’s not what I said at all. Having children is a financial burden, and since it serves a good purpose for the public, the govt should ease the burden of the parents
Posted on 2/2/23 at 11:06 am to lynxcat
quote:
The net amount paid is identical but those getting refunds act like they pulled a fast one on the government…when they just gave an interest free loan.
True, except for some refundable tax credits. They are actually getting back more tax than they paid in, not just getting their own money back after an interest free loan. Like the Additional Child Tax Credit that is still available this year, IF they are low-income.
quote:LINK
For 2022, certain low-income people can only get up to $1,500 per child as a refund, instead of the full $2,000 child credit, if their child credit exceeds the taxes they otherwise owe.
Same with EITC, they are actually making money with these "refundable credits."
Posted on 2/2/23 at 11:24 am to lynxcat
quote:
The psychology of getting a refund is interesting. The net amount paid is identical but those getting refunds act like they pulled a fast one on the government…when they just gave an interest free loan.
Maybe, but It is also forced savings for those people. People getting massive refunds would not likely have saved that amount of given throughout the year.
I get a kick out of people like Suze Orman and Dave Ramsey telling people they need savings, but fussing at them for having a big refund.
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