Short video segment (YouTube) explaining the Advanced Child Tax Credit monthly payments (July–December 2021). Speaker warns these are monthly advances on the child tax credit and may need to be repaid if the filer is ineligible at tax filing; advises caution about opting out and against deliberately overpaying to get a big refund. Contact and social links for Donna Bordeaux/Calculated Moves are provided.
There's a lot of confusion about the advanced child tax credit payments that are starting to come out each month from July to December this year. These payments are advances on your refund. So let's give a really clear example. If you are getting the monthly refund of 200 because you have a child and you get to the end of the year and you file your taxes and you have no way to get that child tax credit, maybe that child is not on your return anymore. You would owe back those payments. So please be aware of how your tax situation is affected by these advanced tax credits. I don't necessarily recommend opting out unless you are the person who will come through next April and have no money left to pay your taxes. If you opt doubt you're giving the government an advance refund on your money at an interest free rate. So we never love to have that happen. Also, if you're wanting to have that big refund in April, that's a fallacy. Remember, it's your money right now and we've seen so much trouble this year with the IRS even issuing the refunds in a timely basis that I don't recommend that you have an overpayment on your account at all. If you have any questions about how this interacts with your tax situation, we'd be happy to help.
Donna Bordeaux from Calculated Moves Please follow us on Facebook, Instagram and LinkedIn. Make sure you check out our blog and our website from the link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me, email me@donnaalculatedmoves.com.
