A not so hot take on the Child Tax Credit – Don’t Hate Me
Unless you've been living under a rock you know that today the first advancement on the child tax credit was deposited into bank accounts of those eligible to receive the payments. There are some people who have chosen to opt out of these payments and are waiting to claim the entire amount at once on their tax return. You might be confused or not understand where this money is coming from and I'm here to tell you that is okay. Keep reading for some friendly advice on what you could do with this payment.
In the words of someone famous, "I'm rich......!"
Like I stated earlier, if you don't want this payment you need to go online and opt out of it. You can opt out of the monthly payments at any time between now and the end of the year. When you checked your bank account today you should receive $250 per child in your home between the ages of 6-17 and $300 per child age 5 and under. If the amount you received today does not line up with these numbers, then you might want to do a little more research.
You want my money back?!
This money is not a "stimulus”, this is an advance on the child tax credit you would typically claim for the entire year when filing your taxes. If you are taking payments now, then you can expect a smaller tax return when you file. My best advice is for you to save as much of this money as you can. You need to treat this money for what it is, tax dollars that will likely be given back to Uncle Sam.
Here's the part where I guilt you
If you choose to spend the money then I suggest you put that money towards the child you are receiving it for. The $250 or $300 per child may help with child care costs, groceries, school supplies, and clothes that are needed. Does your child really need the new Xbox right now? Or would they be better served by having a set of clothes they are comfortable in when they go back to school? It is your money so do whatever you want to with it, I'm just asking our people to be more thoughtful and responsible with these payments. Don't get used to these coming in, as there is no plan beyond December of this year for the child tax credit and how it will be handled moving forward.
So, what will you be doing with the child tax credit payments? Will you be saving or spending? Or have you opted out of the payments all together?