This is it. Today is the day
the advanced final child tax
credit payment went out today.
We know that you have questions
about this and to answer them,
we have Ryan Dodson from
Liberty Tax services.
He will be answering our
questions until about 5:45 or so.
Here's how you get your question answered.
The number is
336-379-5775. Remember text your
questions and you can get your
question answered in real time.
And this is again one of those things
where you can't call your question in,
but you can text it in all right, right.
And so today the last day when
we're talking about the amounts,
the regular average amount
that folks would get,
whether they had a kid from zero to 17.
Let's take a look at those amounts.
Alright, what's great about these
kids that you know if you're getting
the additional child tax credit you
have child under six years old,
you were going to get $3600 so you
have a kid that's older than six?
You're going to get $3000,
and if they increase it just for this year,
it's been proposed for the upcoming years.
But for this year,
you're at least going to get
more more child tax credit,
and so you're going to get half of
that that 3000 or the 3600, so we got.
Six different payments from
July all the way to December.
Then what happens after the December?
So the way you get the other half is when
you file your tax return this upcoming
year whether you followed in February or
March or April but before the deadline.
You're then going to be able to claim the
other half of that of that child tax credit.
Now, if for some reason you did not
get that child tax credit or you
didn't get all of your payments,
you can then claim the part that
you didn't receive in 2021.
Of course, and you can claim it on your tax
return whenever you get around to filing.
This year,
OK, all right. So I want to just
take a look at why people were
getting this to begin with,
so it's not quite free money.
So we've got a graphic up
there that will show you.
Kind of how it's all part
of the American rescue plan.
And so when the President
put this into effect,
he upped the amount that you would get,
but also the government was sending
it out in monthly installments so
that you didn't have to wait and
it was in the hopes that it would
be able to spur the economy and to
help you provide for your child.
Whether that would be schooling or
whatever the needs are for that,
but then the rest of it would
come to fruition on tax day.
So with this Ryan,
so people are kind of like, you know,
sometimes people are like, alright.
Well,
what am I going to get taxed on this
money on these advanced payments?
And no, the answer to that is no,
you're not going to get taxed on it.
This is just this is considered
a refundable tax credit whether
you owe a dollar or whether you
don't know anything in taxes.
If you have a qualifying child on
your tax return, you are going to
get this credit one way or another,
either through one of the six payments.
So you'll get the remainder when
you filed a tax return.
So it is not taxable,
right? So it is not taxable,
but it is a credit on your taxes.
So let's put this up as well.
So let's say you didn't
get the payment today.
Or you don't get the
check that's in the mail.
Or maybe you think that you got
missed out on some of the payments,
like for some reason they prorated
it or you didn't get all of it
or you didn't get every single
month what you were going to do
is claim the credit on your taxes.
Now Ryan,
let's be really specific about
this because it's not something
that happens automatically.
You actually have to go by
line by line on your taxes
to make sure you get this.
Yeah, absolutely you do have to go line
by line on the tax return and make sure
that you are getting the correct amount
now part of the way the IRS is going
to make sure that you're getting the
correct amount is that in late December
and in January they're going to start
mailing out letters to anyone who
received the advanced Child tax credit,
letting them know, hey, look for this
kid with this Social Security number.
Here's how much of the advanced credit you
did receive and you need to make sure you
use that mount in filing your tax return.
Otherwise, if you put the wrong amount.
Down compared to what the IRS has,
it will delay your refund. OK,
so say that one more time for me. At the end.
I don't want people to miss that.
So if if you put down the wrong
amount of advanced child tax credit
that you receive if it's different
than what is on the IRS letter.
So my whole point is that you
have to put down what is on that
IRS letter on your tax return.
That hey look, I did receive these
advanced credits and if it does not
match for whatever reason that may
be and you file your tax return,
the IRS will delay your refund and will
delay sending out the remainder of that
part until they have it cleared up.
So you need to be watching.
For that letter, and that letter is
going to be coming out. I don't know.
Sometime like January early February,
that kind of thing and it will say how
much you got for your child tax credit.
That is not the only thing,
of course that we get in the mail.
We need to make sure that we're watching
for lots of IRS letters in the mail, yes.
Correct, there's they're sending not
only those out, they're also sending
out letters for those folks who may
have received the premium tax credit
for their their insurance that their
insurance is subsidized through. You know,
for for lack of better words, Obamacare.
They should be looking for those
letters that are coming out, you know.
And like if you do happen to move if
you happen to change your address,
please let the IRS know that
you've changed it.
There's a form on the IRS website
you can do to fill that out.
Number one and #2.
Forward your mail from the
United States Postal Service.
Just haven't forward that melt
because these are letters that
you do not want to miss out on.
You don't want to delay your tax
refund waiting on these letters.
Nope, we've already had lots of stories
about delayed tax refunds already this year.
OK, so we are going to take a quick
break and we're back with your text
questions coming up in just a few minutes.