In less than a month, parents of kids
17 and younger will either get $250 or
$300 per kid per month from the IRS.
The child tax Credit is an advanced payment
on what would be a tax credit in 2022.
There are all kinds of questions out
there surrounding the child tax credit,
which is why we have two experts in today,
Scott Braddock from Scott Braddock Financial.
Ryan Dodson from Liberty tax services.
You can get your question answered by
getting that question to our experts.
You text that question,
the number is 336-379-5775 and remember,
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so please don't call alright.
First and foremost,
let's just figure out how much
we're talking about when it comes
to the total amount of payments.
So Scott, let's take a look at that.
'cause it depends on the kids ages.
That's correct, you know this is an increase
from the normal $2000 child tax credit.
That's why it's called
the enhanced tax credit.
So if you have a child younger
than six years of age,
it's been bumped up to $3600.
If your child is between 6 and 17,
they're going to receive $3000.00.
So the $3600 is going to start
paying out at $300 a month,
and those receiving the 3000.
That's going to pay out at $250 a month.
OK, and those payments are slated
to begin on July the 15th.
That is the first payday.
Now Ryan, the first question
that we got already was,
will parents have to pay the
child's tax credits back?
No, you do not have to pay it back.
You're going to get this credit as you
know you get half of the credits between
now and or between July and December,
and so while it may reduce your
refund a little bit in the upcoming
when you file your tax return,
you're still going to get act.
You're still going to get more
back once you include the advance
and the extra amount that you get.
What you know, come filing tax
returns so OK, so this is
something that every parent
would be doing on their taxes.
This is a tax credit.
You're just getting the
advanced payment beforehand.
Ryan, there was a question
from someone who said, well,
what about if I make too much money?
Well, depending upon how much you make,
depends upon whether or not you qualify
for the enhanced child tax credit.
So if you're single and you earn more
than $80,000, you do not qualify
for the enhanced child tax credit.
You just get the regular
child tax credit of $2000.
Same thing for families if your family.
If you're married filing jointly,
it's $160,000.
However, you're still going to
get the child tax credit as long
as you earn less than $400,000.
If you're married so.
You know the vast majority of
us let me know you got to earn
a lot of money not to get the
enhanced child tax credit.
So the vast majority
of us are going to get 3000 or 6000.
OK gotcha. Alright, so let's take
a look at the actual schedule.
The payment schedule for the advanced
payments of the child tax credit
because it does begin on July 15th
and it is every single month on the
15th until the end of the year.
Except for of course in August
because the 15th is on a weekend.
So they're paying you early
on the August date, right?
With that said, Scott,
this person is saying you know
what I think I might want to opt
out of that child tax credit.
How do I do that?
Well, you know there are quite
a few folks that are looking at
this and thinking you know, I I,
I really enjoy receiving that larger
refund after I filed my taxes and I I
really think I'd like to opt out of this.
So what's happening is they
are setting up a portal.
They're setting up a number
of portals actually,
but there will be one specifically for
those folks that would like to opt out.
Another reason that I've seen folks
wanting to opt out and it makes
good sense as they know that their
status has changed and they don't
want to have to pay back this child
tax credit when they do in fact.
File their taxes next year.
OK,
following up on that.
Speaking of you were talking
about the portal's there is
a non filer tax portal and
Ryan this person is asking.
I don't file a tax return.
I got custody of a child in the
later part of last year.
So how do I go about
getting that tax credit?
So earlier this week,
the IRS opened up a different portal.
This portal is just for folks who
did not regularly file a tax return.
It's called the non filer tax
portal for the child tax credit.
You can go on the IRS website,
go to that, put your information in,
and put in like your your your name,
your Social Security number and also
your direct deposit information and
they'll start sending you those of
dance credits even though you have
not filed a tax return all right
then the next question they're asking is
what if I need to update my bank? Info.
You can do that that that same
portal where you can update
your status and and so you can.
Then that happens so you can update
all of your information including your
banking information and that does happen.
We changed banks or our marital
status changes and maybe the the
other spouse is the one that's
going to be caring for that child.
So we want to make sure that the
payment goes to them and the
status is updated so we don't have
to pay back that that refund or.
I have to go to the wrong account, right?
We don't want any of those
things that happen right?
We've got a couple more questions coming up,
but we are going to take a break really
quickly and we will be right back
with you with your text questions.