As with many tax-related issues, the Child Tax Credit can be confusing. Here’s why you may want to opt out of the new monthly payments.
SAN FRANCISCO (KGO) — Millions of parents found more money in their bank accounts this week as those extra Child Tax Credits rolled in. However, tax experts warn some parents may actually want to optof getting this extra money. It seems absurd. Why would anyone turn down « free » money? As it turns out, the IRS is sending payments based on 2020 income. But if you earn more this year than you did last year, you may end up having to pay back all that money. »That will make a big difference. I need childcare now, not next year during tax season, » said Donnise Powell, a Fremont mom. »This is a huge boon. It will help families get through this really tough economic time, » said Amie Latterman of the Children’s Council. The enhanced Child Tax Credit is helping millions of families struggling through the economic downturn.
