While American parents are getting filled with joy and glee after receiving the child tax credit in their respective bank accounts. However, receiving this child tax credit which will go out monthly can lead to a few unwelcome surprises down the road!
This Is The First Child Tax Credit Payment Out Of The Series Of Six Payments!
American parents are usually thrilled to see sums of hundred dollars landing in their respective bank accounts in the last week. The IRS managed to send out the first payment regarding the tax credit of children. These credit payments are going out for the 1st time every month. During the spring the lawmakers managed to beef up this credit as a significant portion of the Covid-19 relief package of the Democrats. The relief package is worth $1.9 tn. The IRS is going to send out half of these credits this year. It is intended to help American parents with their day-to-day expenses. These expenses will include school, clothing, and food supplies.
Next year, after filing their 2021 tax returns, the parents will receive the remaining half of the payments. However, receiving the payments of the child tax credit can lead to a few unwelcome surprises down the road. There can be a major increase in the taxes of American parents.
They can however receive these payments related to the child tax credit in another way. That involves not receiving the income stream of this year by opting out of these payments through the portal created by the IRS. They can choose to receive their payments related to a child tax credit as a huge sum after filing their tax returns for 2021. This is the usual procedure by which the payments should go out!