Hey all!
Starting July 15, families will start receiving monthly payments as high as $300 per child as part of the new expanded child tax credit. The most important thing to note about the 2021 Child Tax Credit is that it's an ADVANCE tax credit. This means that instead of receiving one lump sum on your tax return, you will be receiving smaller monthly payments, and perhaps a smaller tax return in the new year.
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Tip #1: Signing up for direct deposit with the IRS could help you get your credit even faster than waiting for a check to arrive in the mail.
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Tip #2: If you would like to receive one lump sum Child Tax Credit next tax season instead, use this tool to unenroll and opt-out of monthly payments.
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Tip #3: Use this tool from the IRS to claim the Child Tax Credit if you don't typically have to file taxes.
BONUS: Parents alternating who claims a child each year may be the most common situation where a taxpayer may receive the advance child tax credit payments even when they won’t be claiming the child. If you claimed a child for the tax year 2020 but the other parent will claim them for the tax year 2021, you may want to opt-out of the advance child tax credit payments when the IRS provides the method to opt-out.
–SaverLife Moderator Team
We're opting out of it and staying with one lump sum.
Monthly however I do have anxiety around how this will affect me once I file my 2021 taxes.
I can't figure out what would be better one payment or monthly payments one gets me money now the other gets me a lot more money later on
When is this suppose to start monthly?
I feel conflicted and its hard to say I have a clear understanding of what it means to get the monthly payments.
I don’t know why they give you it then stop you from not getting it at the end of the year. A lot of people depend on that at the end of the year mainly if they are behind on there bills. Some people be smart to opt out of it
I hope my tax refund will look the same as every other year
I'm going to do the monthly payments, but it does make me nervous on how my tax refund will look ugh. I feel like I need the monthly payments though to get caught up after not being able to work as much through Covid.
I have a child but I don't put for this year.
I think monthly payments are best so that you'll have a steady flow of money every month to get through these hard times
Since this is an increase in the tax credit (money I wasn't expecting) and it is coming to me monthly, I plan on putting it directly into savings. I've already budgeted without having it, this bonus will just be a safety net in case something happens later on.
Remember this will significantly reduce your tax return at the end of the year if you opt in. For monthly payments
It just our tax money from next year.
It would be nice to know how this will affect tax refunds next season
