Recent content by terrier2tiger

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    OT: Child Tax Credit “Payment”

    It’s tricky talking taxes because even though it’s not income, it does impact your tax liability favorably or unfavorably. Since a credit is a dollar for dollar deduction and acts similar to your withholding things like this actually create a bigger ending impact then an income item. At least...
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    OT: Child Tax Credit “Payment”

    Not crazy at all and that could be a great approach depending on yourself tax situation. The problem is when you are a taxpayer who pays quarterly estimates based on your prior year tax return. The credit you claimed, if any, was built into those estimates. If the IRS were to overpay the credit...
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    OT: Child Tax Credit “Payment”

    No worries and Q A10 reconciles in the sense that it’s not taxable income but it is reducing the credit you would otherwise claim on your tax return. That credit acts like withholding so if they orepay you the credit then you don’t get to claim it on your return like you normally would. I...
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    OT: Child Tax Credit “Payment”

    As a CPA, I warn that nothing is ever free. It’s the government prepaying you the child tax credit you otherwise would claim on your 2021 tax return. Problem(s) with this approach is that every parent was automatically opted in and opting out isn’t the most user friendly and both parents have...
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