Permanent child income tax credit?

[1978elcamino]

During my busy morning I watch the news as Im preparing for my day. I dont always catch everything correctly but I think I heard something along the lines of considering making the temporary monthly child tax credit a permanent thing. Really???

 

[Oillover]

Is this in relation to all the 20-40 somethings who still live at home with their parents?

 

[SuperSalad]

During my busy morning I watch the news as Im preparing for my day. I dont always catch everything correctly but I think I heard something along the lines of considering making the temporary monthly child tax credit a permanent thing. Really???

If you are good at figuring out withholdings, it has been permanent for some time already. At least as I understand it. I've always been within a few hundred dollars when filing without owing.

I was a bit confused when it rolled out, so I opted out because I want to be sure how it affects filing in April. I'm pretty sure I would've been getting about $350 per month 'extra' that I would've been ineligible to claim come tax season and therefore owe back.

Is this in relation to all the 20-40 somethings who still live at home with their parents?

Why would it have anything to do with dependents who don't qualify for child tax credits?

 

[ravster2015]

They'll be taking your money and be giving it to others.

 

[1978elcamino]

Permanent monthly payments sounds very much like universal income.

 

[SuperSalad]

It's a tax credit. It is credited against tax liability so it reduces that liability to whatever amount one can claim.

The only "free money" is for lower income filers.

Single filers under $40,000 and joint filers under $60,000 AGIs won't need to repay overpayments come tax time. Above those limits and it is the same old credit it has been for years, just delivered in installments.

If it were a stimulus check, now that would be more akin to universal income.

 

[Hall]

considering making the temporary monthly child tax credit a permanent thing.

You don't understand it or you were mislead. @MotoTribologist explained it.... Anyone with children gets to claim a credit (X dollars per child per year - amount is irrelevant for this discussion). The monthly or quarterly or whenever thing simply is a "pre" credit, in cash. When it comes filing time, I expect I'll have a XXXX form from the IRS indicating how much I've rec'd the previous year and it will be subtracted from the "full" amount of the child tax credit.

 

[ron17571]

Hall is right from what I understand.

 

[SuperSalad]

Hall is right from what I understand.

 

[2strokeNorthstar]

During my busy morning I watch the news as Im preparing for my day. I dont always catch everything correctly but I think I heard something along the lines of considering making the temporary monthly child tax credit a permanent thing. Really???

It’s just moving money around. Instead of getting it when filing taxes it is just divided and given out early, right? Makes no difference in the long term.

 

[JohnnyG]

It's called buying votes.

 

[Astro14]

I’m not sure you’re clear on what you’re asking about. Child tax credit has existed for a long time. Stimulus payments, including those for children, were intended to be temporary. There are several
political discussions taking place on making them permanent.

Regardless, I don’t think BITOG is the right place to be asking tax and tax policy questions.

I would check with an accountant.

 

[BMWTurboDzl]

There has always been a tax credit or deduction for kids. The system is no different than a company which offers pensions to its retirees. The system NEEDS and ever expanding payer base. More kids = more payers as adults or so goes the thinking.

 

[M56959]

Well, that went as expected.