So they have begun sending out monthly checks for 50% of the expected child tax credit to be received upon filing taxes. Having the cash advance is great but I don't want to get hit with taxes or even a significant decrease in my return that I usually receive upon filing. I know the credit went up so I am trying to calc how much will my credit decrease when filing if I continue to receive the checks monthly or is it better to hold off the payments and receive in a lump sum when filing?
What is everybody else doing?
Apologies if this was discussed already, a quick search did not ID a discussion.
if
A) you have more than 3 kids
B) you're making under the 150K threshold (so won't get it clawed back)
I believe the remaining half you'll get at return time will be equal or greater to whatever CTC credit you got last year.
that said, if you're asking general attitudes: If you didn't really suffer income reduction now, put all stimulus and covid related handouts into a separate account (so you don't 'get used to' them) and put it away
