re: Starting in July Biden administration will be pouring paper into "real economy"

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This is just a front of the child tax credit right? I was under the impression that they are advancing the credit and people won't be able to deduct that from their taxes when they file 2021 returns. People making under 150k get an extra amount, but in total, everyone that qualifies for the normal child tax credit will get checks.

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It's larger than Child tax credit, but yes it's replacing that.

Child tax credit used to be $2,000/kid. This is $3,000-$3,600 per kid, now paid out in $250-$300 payments per month throughout year and you cant get the tax credit for it any more.

For 2021 it will be icky because they arent starting payments till July. So let's say you make less than $150k as a married household and have 1 kid under 6 years old.

You will get $1,800 from July-December in $300/mo payments. You tax credit for 2021 taxes will be $1,800 as well, to true you up to the full $3,600 amount for 2021.

The income phaseout is from $150k all the way up to $440k for married/joint. So after $440k AGI, you get nothing. Although it looks to be a pretty sharp decline in the early amounts of that phaseout.

Say you make $200k/yr married joint. The payment will only be $167 of the $300/mo, then your tax credit will be $1000 for only $2,000 total of the $3,600.

Here's a Calculator for it for 2021

In 2022 and beyond, assuming this sticks, you'll just continue to get the $250-300/mo per kid and zero tax credit instead.

Going to be a wake up call maybe not as much as this year's taxes but certainly next year's taxes for people who dont tax plan at all if they are still expecting that credit then get nothing after getting their monthly payments.