Enhanced Child Tax Credit

[cgr]

I have a client who received a check at his Israeli address for September advance CTC.

Very odd as only residents qualify for the Enhanced CTC.

[ae123]

Have any of you who received extra for September, paid Obamacare tax?

Not I.

[ae123]

$250/month for children 6-18
$300/month for children 5 and younger

Birthdays calculated as of 12/31/21

Ok, I made the calculations.
The first 2 month's payments were each $150 less than they should have been.
The third month's payment was $626 more than the previous 2 months.
So even if they were back-paying the missing $150 x 2, the third month should be $450 more not $626 more.

[Jack out of the box]

Very odd as only residents qualify for the Enhanced CTC.

An additional client received such a check at her Israeli address. Amounts make no sense even if expats would not be excluded.

[cgr]

Ok, I made the calculations.
The first 2 month's payments were each $150 less than they should have been.
The third month's payment was $626 more than the previous 2 months.
So even if they were back-paying the missing $150 x 2, the third month should be $450 more not $626 more.

They don't catch up by paying the difference. Instead they recalculate the owed amount over the months left, and catch up on a prorated basis (which makes this all weirder because you and @ExGingi should have received less than the amount owed, not more).

[ExGingi]

They don't catch up by paying the difference. Instead they recalculate the owed amount over the months left, and catch up on a prorated basis (which makes this all weirder because you and @ExGingi should have received less than the amount owed, not more).

So I guess based on this, no one should be fearing any IRS audits. They are completely incompetent.

[cholent]

So I guess based on this, no one should be fearing any IRS audits. They are completely incompetent.

I would draw the opposite conclusion

[ExGingi]

I would draw the opposite conclusion

How so?

I would never fear an incompetent auditor that might be out to get me, as their findings are likely to be easily discredited.

[ae123]

How so?

I would never fear an incompetent auditor that might be out to get me, as their findings are likely to be easily discredited.

Somehow, when it comes to auditing they have very competent agents.

[ae123]

They don't catch up by paying the difference. Instead they recalculate the owed amount over the months left, and catch up on a prorated basis (which makes this all weirder because you and @ExGingi should have received less than the amount owed, not more).

So, what now?
Just wait for tax filing 2021?

[ExGingi]

So, what now?
Just wait for tax filing 2021?

You don't want to see the surprises they have in store for Oct, Nov, and Dec.?

[cgr]

So, what now?
Just wait for tax filing 2021?

Unless you're worried about earning too much to qualify at year end, yes, just wait and your accountant will adjust on your tax return.

[etech0]

I still haven't gotten any of the monthly payments. Does anything need to be done on my end (or the accountant) when I file taxes, or will the IRS figure it out?

[ae123]

You don't want to see the surprises they have in store for Oct, Nov, and Dec.?

I guess we'll both post them here.

[ae123]

Unless you're worried about earning too much to qualify at year end, yes, just wait and your accountant will adjust on your tax return.

Got it.
Thanks.

[Kobe Bryant]

Unless you're worried about earning too much to qualify at year end, yes, just wait and your accountant will adjust on your tax return.

Regardless, it would be adjusted retroactively.

[cgr]

I still haven't gotten any of the monthly payments. Does anything need to be done on my end (or the accountant) when I file taxes, or will the IRS figure it out?

There'll be a worksheet on the 2021 return to indicate the qualifying amount, amount received, and difference owed (or overpayment). Similar to the EIP worksheet.

[etech0]

There'll be a worksheet on the 2021 return to indicate the qualifying amount, amount received, and difference owed (or overpayment). Similar to the EIP worksheet.

Got it. So I just need to tell my accountant that I didn't get any?

[Jack out of the box]

Got it. So I just need to tell my accountant that I didn't get any?

If I remember correctly, the IRS is supposed to send out letters at year's end showing a list of payments.

[cgr]

Got it. So I just need to tell my accountant that I didn't get any?

Yes. It's also possible they'll still catch up before year end, as they're constantly shifting things each month.