Armed Polite Society
Main Forums => Politics => Topic started by: zahc on June 07, 2021, 11:30:28 PM
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For those unchilded, the federal child tax credit is substantial. Something like $2000/kid per year. So with 3 kids that's $6000/year off my taxes. Not a small amount.
I got a letter from the IRS that instead of giving you the Child Tax Credit when you file taxes, they are going to send you monthly payments instead.
--there is no way to opt out. The letter says there should be a way to opt out by July but right now everyone is going to start getting the monthly payments by default
-- I don't want this because I carefully plan my taxes and now I have to make adjustments to my withholding or else I'll end up with a surprise tax bill.
--in fact, since it's opt-out, it means absolutely every W2 employee with kids will have to go adjust their withholding or they might have a surprise tax bill next year. So great...I get a check from the IRS for $500/mo, but I go adjust my withholding up by $500/mo to send it right back to them. What is the possible benefit of that? Just conditioning people to getting checks from the IRS? It's going to backfire if a bunch of people end up owing taxes next year instead of getting a refund, and not be able to pay it because they spent their tax credit checks already.
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There's a little more to it than that, though I agree that opt in would be better. For 2021 only, the ctc is increased to 3000 per spawn, 3600 for under 6 (I think), so there's an increased credit that these monthly payments are working against. But... The monthly payments will exceed the extra 1k credit by 500, so refunds will go down by that much. Like you, I carefully plan my taxes and will be increasing my w2 withholding by 200 per month (2 spawn here) to compensate. Luckily, for fed gov employees, that's super easy.
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What is the possible benefit of that? Just conditioning people to getting checks from the IRS?
(https://th.bing.com/th/id/R03c14469218ea2f4de44a5a2e3282074?rik=XQrIsrnGPxx9aA&pid=ImgRaw)
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They still haven't processed my tax return, but they are already talking about sending checks for next year's tax credits?
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They have been using the IRS for backdoor welfare for a while now.