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Message
New child tax credit in stimulus
Posted on 3/6/21 at 1:25 pm
Posted on 3/6/21 at 1:25 pm
So apparently come July the government will be giving checks for the child tax credit in place of claiming it come tax time. This is in addition to increasing it.
My question is I would have to change my withholding/allowances correct (ie lower it)?? Because right now with three kids and a mortgage I spread 4 between my wife and myself.
My question is I would have to change my withholding/allowances correct (ie lower it)?? Because right now with three kids and a mortgage I spread 4 between my wife and myself.
This post was edited on 3/6/21 at 1:26 pm
2
Posted on 3/6/21 at 1:44 pm to tylercsbn9
Wouldn’t it just be how 2020 taxes were? If you got the stimulus the tax credit is already built it and shouldn’t effect your refund/taxes owed
Posted on 3/6/21 at 2:00 pm to tigersfan1989
This isn’t the stimulus. The is the tax credit for kids. Every year you can claim 2k per kid when you file. Now they’re increasing it 3.6 and 3k depending on age if the kid. Additionally they are sending checks out monthly instead of you having to wait until you file taxes.
For me I up my allowances in order to get more through my paycheck. This leads to me having a smaller refund come tax time. So since I do this I assume I need to lower my allowances if I choose to get the monthly checks starting in July?
For me I up my allowances in order to get more through my paycheck. This leads to me having a smaller refund come tax time. So since I do this I assume I need to lower my allowances if I choose to get the monthly checks starting in July?
This post was edited on 3/6/21 at 2:00 pm
Posted on 3/6/21 at 2:15 pm to tylercsbn9
The new W-4 form focuses less on "allowances" and more on trying to get your withholding so your total tax due at that time is close to zero.
Pre-2018, I had not qualified for child tax credit for some time. In 2018, when the AGI threshhold went up, I did, so I adjusted my withholding so that I would get more each paycheck, with the credit covering my balance that would now be due.
I'm curious if the advance payment of the credit is going to be optional.
If it's not, I'll have to increase my withholding to make up for the fact that I'll no longer be able to use the credit on my tax return. I'll get a monthly check, so in the end I'll be neutral (actually 2K to the good because credit will go from 4 to 6 for two kids).
But yes I'll have to change withholding.
Pre-2018, I had not qualified for child tax credit for some time. In 2018, when the AGI threshhold went up, I did, so I adjusted my withholding so that I would get more each paycheck, with the credit covering my balance that would now be due.
I'm curious if the advance payment of the credit is going to be optional.
If it's not, I'll have to increase my withholding to make up for the fact that I'll no longer be able to use the credit on my tax return. I'll get a monthly check, so in the end I'll be neutral (actually 2K to the good because credit will go from 4 to 6 for two kids).
But yes I'll have to change withholding.
Posted on 3/6/21 at 2:26 pm to LSUFanHouston
quote:
I'm curious if the advance payment of the credit is going to be optional.
It is
Posted on 3/7/21 at 10:59 am to LSUFanHouston
quote:
If it's not, I'll have to increase my withholding to make up for the fact that I'll no longer be able to use the credit on my tax return. I'll get a monthly check, so in the end I'll be neutral (actually 2K to the good because credit will go from 4 to 6 for two kids).
Is the new credit going to have phase outs?
ETA - Never mind. I see that is phases out at $75k and $150k, which is much lower than the previous $200k-$400k. If you are phased out you just claim the credit the same way you do under the current (soon to be former) law.
This post was edited on 3/7/21 at 11:04 am
Posted on 3/7/21 at 11:15 am to go ta hell ole miss
How much are they sending a month per kid? We talking $300 a month per kid since it’s $3600 a year?
Posted on 3/7/21 at 12:48 pm to bubbz
From what I quickly read on it this morning they are only sending 1/2 of the amount and doing it starting in July through December. The rest you will get when you file taxes. Also, the bump from 2k to 3/3.6k is income dependent the same as stimulus checks (150k joint) whereas the existing $2k tax credit has a max agi of 400k (joint).
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