Enhanced Child Tax Credit

[EliJelly]

Exact same issue with me. The IRS got their math off with $50, Unless they have my 5yr old as a 6 yr old.

Wow, interesting.

[yosefsv]

Wow, interesting.

I am not even really surprised. If they got it wrong about issuing the Stimulus for children born in 2020 they could get it wrong with 5yr old's.

It seems to be some kind of glitch/error in the IRS system for the EIP1 and EIP2 for children born in 2020.
There are a lot of people (including myself) who are getting their returns adjusted/reduced by $1100 and a separate deposit of $1400 for EIP3.

I called and got the missing $1100 about two weeks after the refund and EIP3 deposits.

[helpusout]

Exact same issue with me. The IRS got their math off with $50, Unless they have my 5yr old as a 6 yr old.

u actually got the money already?

[yos9694]

Ugh, payments posting tomorrow just showed up for me. I find this annoying because if I wanted an advance on my 1040 refund I could adjust my withholdings. They're definitely doing this because most people won't understand where the money is coming from.

And they make it annoying to opt-out so I'm not going to. Instead, I'll just increase my federal withholdings at work to offset this nonsense.

[Danlover111]

Does the child need to have a SSN?

[yos9694]

Does the child need to have a SSN?

Yes

[YitzyS]

Ugh, payments posting tomorrow just showed up for me. I find this annoying because if I wanted an advance on my 1040 refund I could adjust my withholdings. They're definitely doing this because most people won't understand where the money is coming from.

And they make it annoying to opt-out so I'm not going to. Instead, I'll just increase my federal withholdings at work to offset this nonsense.

I know this sounds like a crazy favor, but I'm a big baal chesed, and I'm willing to take the money from you if you really want me to.

[yos9694]

I know this sounds like a crazy favor, but I'm a big baal chesed, and I'm willing to take the money from you if you really want me to.

Lol. It's already taken... by the IRS. That's the whole problem- they send me this money now but when I fill out my taxes at the end of the year my refund will be reduced by this amount. So they're just messing up my tax planning, but not actually giving me any more money.

Or are they?

[YitzyS]

Lol. It's already taken... by the IRS. That's the whole problem- they send me this money now but when I fill out my taxes at the end of the year my refund will be reduced by this amount. So they're just messing up my tax planning, but not actually giving me any more money.

Or are they?

IINM, the tax credit increased by this amount, so at the end of the year, you will still get what you got last year (assuming the same number of kids in the same age brackets).

[yosefsv]

u actually got the money already?

No, But I got a letter with the amount that I will receive.

[yos9694]

IINM, the tax credit increased by this amount, so at the end of the year, you will still get what you got last year (assuming the same number of kids in the same age brackets).

Oh, maybe that's right. The child tax credit became $2,000 after Trump's miserable TC&JA, and this "enhancement" increases it to $3k/$3.6k. So the half that they're advancing is only a little bit more than the excess. Thanks.

Another major difference is that this "enhanced" version phases out by income while the Trump version did not (which was consistent with the Exemption amounts it replaced) but no one is allowed to complain about that. We're solving the billionaire crisis by increasing taxes for people making over $75,000!

[yosefsv]

Oh, maybe that's right. The child tax credit became $2,000 after Trump's miserable TC&JA, and this "enhancement" increases it to $3k/$3.6k. So the half that they're advancing is only a little bit more than the excess. Thanks.

The refundable part was $1400 per child and capped at 15% of the AGI. So for low income families, the "enhancement" is huge.

[yos9694]

The refundable part was $1400 per child and capped at 15% of the AGI. So for low income families, the "enhancement" is huge.

True, true. And for people making more, the refundable aspect didn't matter (they pay taxes), so this can be a "disenhancement" for some. I don't expect Bezos and Gates to pay any extra as a result of this change, but you can bet that a bunch of middle class people will.

[tov hashem]

Wow, interesting.

same here

[Kobe Bryant]

Lol. It's already taken... by the IRS. That's the whole problem- they send me this money now but when I fill out my taxes at the end of the year my refund will be reduced by this amount. So they're just messing up my tax planning, but not actually giving me any more money.

Or are they?

IINM, the tax credit increased by this amount, so at the end of the year, you will still get what you got last year (assuming the same number of kids in the same age brackets).

Almost correct. For children under 5, the payments are 300*6=1800. So it would be off by $200 per child. The bigger question is, why would anyone want to give the government an interest free loan?

[yos9694]

Almost correct. For children under 5, the payments are 300*6=1800. So it would be off by $200 per child. The bigger question is, why would anyone want to give the government an interest free loan?

Why don't I just set my withholdings to $0 then

[Lurker]

The bigger question is, why would anyone want to give the government an interest free loan?

Do you know of anyone else who has more debt than they do? They really need our support during these difficult times.

[etech0]

Do you know of anyone else who has more debt than they do? They really need our support during these difficult times.

I'm not worrying about the deficit, it's big enough to take care of itself

[shapsam]

Why don't I just set my withholdings to $0 then

הא גופא קשיא
Why don't you?

[Jellybelly]

Lol. It's already taken... by the IRS. That's the whole problem- they send me this money now but when I fill out my taxes at the end of the year my refund will be reduced by this amount. So they're just messing up my tax planning, but not actually giving me any more money.

Or are they?

They’re doing you a favor , as a dollar now will be worth significantly more than a dollar at the end of the year, so better take it now