Should you opt out of the child tax credit?
The Biden administration has sent letters to families alerting them to payments this month that are part of an expanded child tax credit that aims to support Americans as they overcome the pandemic. Instead of claiming the benefit during tax season, eligible families receive half the credit, up to $ 300 for each child, in monthly payments that started in July and will end in December.
The payments are a welcome relief for many households – families with 60 million children received $ 15 billion in July – but there is some confusion as to what they can mean when it comes to filing tax returns. next year. Tara Siegel Bernard reports for The New York Times some of the top reasons taxpayers may want to take a closer look at potential tax implications or consider opting out of advance payments.
“Accepting credit now can be a lifeline for many, but it’s important that taxpayers know how it will affect them during next year’s tax season,” said Cari Weston, accountant and director. of Tax Practices and Ethics at the American Institute for Certified Public Accountants, a professional group.
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