Stimulus check tracker (2 Viewers)

I opted out. It's going to be a nightmare for a lot of people assuming it's just another stimulus payment. Gonna be a LOT of upset folks when they figure out they have to pay at the end o the year because they accepted the advance payments.

only if you make over the threshold in 2021 but not 2020.
it basically is another stimulus check. they doubled the child tax credit, then are sending it early in monthly installments.
what are your concerns about paying it back if you make less than the approved amount?

What he's saying is of your normally end up owing more tax when you filed except for the child credit that changes it to a refund... now, you'll get more money each month but may owe a tax bill in April.
I've been roughly breaking even with the $2,000 tax credit.

My math was that since we're only getting the $3,000 credit for 6 months (so really, only $1500), effectively I can take the money now and will owe an extra $500 on taxes next year. So I figure I'll go ahead and take the money now, save a couple months of it for taxes, and keep the rest.

I will probably need to opt out next year, though, or I'll probably owe $2k in taxes plus penalties..
 
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BTW, the child credit dropped. I got my payment today.

Probably going to throw it in the kids college fund, now that my wife is working again.

Hmm, that actually reminds me to double check the other Florida prepay options to see what they cost. Maybe I don't have to just do the 529 account...
yep wife called me a bit ago like "where this $167 from fed deposit come from"

i said " money fairy"

guess ill hop on IRS and opt out....anyone know of specific link to opt out?
 
Got $250 for one kid, she just turned 16 this week. My other daughter turned 17 in November of 2020, it seems she doesn’t qualify.
 
Maybe I'm thinking this wrong, but if they doubled the tax credit, but we are only getting half... if you take the whole thing for the 6 months, you shouldn't owe anything different come tax time?

I'm not opting out of anything. Taking the $3300 and putting it in my savings. If I need it, then it's there. If I don't and owe anything come tax season, then it's there. Rather have it available than not.
 
Maybe I'm thinking this wrong, but if they doubled the tax credit, but we are only getting half... if you take the whole thing for the 6 months, you shouldn't owe anything different come tax time?

I'm not opting out of anything. Taking the $3300 and putting it in my savings. If I need it, then it's there. If I don't and owe anything come tax season, then it's there. Rather have it available than not.
Depends on their age, and the other factors I stated earlier.
 
Maybe I'm thinking this wrong, but if they doubled the tax credit, but we are only getting half... if you take the whole thing for the 6 months, you shouldn't owe anything different come tax time?

I'm not opting out of anything. Taking the $3300 and putting it in my savings. If I need it, then it's there. If I don't and owe anything come tax season, then it's there. Rather have it available than not.
First, they didn't double the credit. It was $2,000 per child. Now it's $3,000 per child 6 or older, or $3,600 per child under 6. I'll break down some of the math as I'm seeing it currently.

Let's start with 6 and over:
Since we're getting it for half the year, that's $1,500 per child paid out of the $3,000 per 6 or older child. If you're like me and broke even on the $2,000 per year credit, that means that come tax time, you will owe a $500 bill per child ($3,000 credit - $1,500 received = $1,500 credit left against $2,000 owed in the past)

With under 6 it's slightly better at $200 owed per child:
($3,600 credit - $1,800 received = $1,800 credit left against $2,000 owed in the past)

So in my case, with one child, I'm going to eat the $500 at tax time. Not too bad for me, but it could get rough for people with multiple kids.

Now, if you were getting a refund each year with the $2,000, then you will receive less refund, but it won't be too bad because you're just getting that money monthly instead of as a tax refund, which was the point of the bill. It's always a good goal to try to get to $0 refunded/owed at tax time if you can, as that's more money in your pocket each month that you can use now or save and take the interest on.

But with this new bill, every kid increases the tax bill at the end of the year (actually just reduces the tax credit, but it depends on how much you needed that tax credit in the past to break even), so if the tax credit got you to zero in the past, taking it now is probably going to come with some sticker shock in the spring.

It's also important to recognize that this situation gets worse if you continue to take the monthly credits in 2022 (again, assuming you need the credit to break even and weren't getting a refund in the past). In 2022, the bill will set you back the full $2,000 per child if you needed the credit to break even, regardless of age, as you will have received the entire credit at that point. The increase in credit does not matter because all of it is being paid out monthly. You will not have a child tax credit at all to reduce your tax liability for 2022. Also, if you owe over $1,000, you will also be hit with penalties.
 
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First, they didn't double the credit. It was $2,000 per child. Now it's $3,000 per child 6 or older, or $3,600 per child under 6. I'll break down some of the math as I'm seeing it currently.

Let's start with 6 and over:
Since we're getting it for half the year, that's $1,500 per child paid out of the $3,000 per 6 or older child. If you're like me and broke even on the $2,000 per year credit, that means that come tax time, you will owe a $500 bill per child ($3,000 credit - $1,500 received = $1,500 credit left against $2,000 owed in the past)

With under 6 it's slightly better at $200 owed per child:
($3,600 credit - $1,800 received = $1,800 credit left against $2,000 owed in the past)

So in my case, with one child, I'm going to eat the $500 at tax time. Not too bad for me, but it could get rough for people with multiple kids.

Now, if you were getting a refund each year with the $2,000, then you will receive less refund, but it won't be too bad because you're just getting that money monthly instead of as a tax refund, which was the point of the bill. It's always a good goal to try to get to $0 refunded/owed at tax time if you can, as that's more money in your pocket each month that you can use now or save and take the interest on.

But with this new bill, every kid increases the tax bill at the end of the year (actually just reduces the tax credit, but it depends on how much you needed that tax credit in the past to break even), so if the tax credit got you to zero in the past, taking it now is probably going to come with some sticker shock in the spring.

It's also important to recognize that this situation gets worse if you continue to take the monthly credits in 2022 (again, assuming you need the credit to break even and weren't getting a refund in the past). In 2022, the bill will set you back the full $2,000 per child if you needed the credit to break even, regardless of age, as you will have received the entire credit at that point. The increase in credit does not matter because all of it is being paid out monthly. You will not have a child tax credit at all to reduce your tax liability for 2022. Also, if you owe over $1,000, you will also be hit with penalties.
Understood

I typically get back between $1300-2000 depending. I should be OK accepting it.
 
only if you make over the threshold in 2021 but not 2020.
it basically is another stimulus check. they doubled the child tax credit, then are sending it early in monthly installments.
what are your concerns about paying it back if you make less than the approved amount?
Without having to calculate what I will end up paying (including working overtime) and what my withholding should be there's no way of knowing that my wife & I's employers are withholding the right amount so that I won't have to pay at the end of the year. I'd prefer to just get the full $3000 credit at the end of the year rather than owe on an additional $1500. I know it will even out regardless and I know that I could just bank the $250 payments to avoid any risk, but I don't really need the money in the bank right now because I've not really been impacted by Covid. I'd rather err on the side of caution and wait 6 months or so to get it.
 
I’m just gonna go ahead and throw out a completely unsubstantiated guess that knowing democrats, come next spring, there will be some sort of tax adjustment made to protect from the sticker shock.
 
Without having to calculate what I will end up paying (including working overtime) and what my withholding should be there's no way of knowing that my wife & I's employers are withholding the right amount so that I won't have to pay at the end of the year. I'd prefer to just get the full $3000 credit at the end of the year rather than owe on an additional $1500. I know it will even out regardless and I know that I could just bank the $250 payments to avoid any risk, but I don't really need the money in the bank right now because I've not really been impacted by Covid. I'd rather err on the side of caution and wait 6 months or so to get it.

Jobs/health aren't guaranteed. I have a 6 month emergency fund and I'd still rather have the money available. I don't see how taking the money and putting it in a savings is negative... at all, unless you have no self control with your money.
 
Jobs/health aren't guaranteed. I have a 6 month emergency fund and I'd still rather have the money available. I don't see how taking the money and putting it in a savings is negative... at all, unless you have no self control with your money.
You do you...

As I said, I don't need the money in my account right now. I don't need it because I already exercise self control, because I wasn't negatively impacted by Covid and because $1500 isn't going to make or break me regardless of what happens in the next several months. I see it as a negative for the exact reasons I listed.
 

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