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Child Tax Credit (1 Viewer)
- Thread starter The General
- Start date
The General
Footballguy
Move to Political Forum please.
Lion to myself
Footballguy
Yes to your question. Tax Credits are a dollar for dollar reduction in your tax bill. Tax Deductions reduce your taxable income. I’m not a tax advisor but that’s my understanding.
-OZ-
Footballguy
It's a fully refundable tax credit.
If a family with 2 children 6-17 owes $5,000, they'll get $1,000 back.
Or, you know, purely hypothetically. A family with 4 children 6-17 won't owe any taxes until they would owe $12,000 in taxes.
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Capella
Footballguy
-OZ-
Footballguy
If my math is right, that family filling joint with 4 children ages 6-17 can make just over $118,000 (assuming just the standard deduction) and pay no federal taxes. There are other credits and deductions but that's my simple math.
-OZ-
Footballguy
This is a good point which people need to be aware. Usually the CTC lowers your tax bill (duh) but if they're paying July-December it will reduce your taxes less than usual. Just something to consider with withholdings.
Jayrod
Footballguy
I didn't find any details on if this was going to be automatic based on some criteria or if you were going to have to apply for it somehow. Either way, I think it will be targeted to people in poverty, not the families making $100-150K/year.
-OZ-
Footballguy
-OZ-
Footballguy
I'd be on board with that, but it's not what I'm reading. Details will come but at least the speculation is that the money will be automatic.
I'm okay with getting the extra $1k monthly. But this seems overly expensive.
I'm sure the everyone will spend it all on their kids and not buy more cigarettes, alcohol and big TV's. They will also not have more kids to get more money.
E Street Brat
Footballguy
I'm okay with this. What I don't like is when you have one kid and owe $1500 and get a $100.00 refund. It should just bottom out at zero,
That's been my beef with the EITC for years.
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Ned
Footballguy
General Malaise
Footballguy
General Malaise
Footballguy
caustic
Footballguy
Studies of the Canadian child allowance found that the cash transfers *reduced* parents' spending on temptation goods like alcohol and cigarettes, presumably because they were less stressed about the family's financial situation. Good stuff.
https://www.nber.org/system/files/working_papers/w21101/w21101.pdf
psychobillies
Footballguy
I'll never understand why people with kids should be paying less in taxes than people who don't have kids. It should be the exact opposite.
-OZ-
Footballguy
Its an economic stimulus to allow parents to afford child care, so they can keep working.
-OZ-
Footballguy
For this round, it's supposed to be so kids are less likely to grow up in poverty. Which apparently is defined as making less than $75k or $150k.
Shatner!
Footballguy
Clown Car
Footballguy
-OZ-
Footballguy
The full child tax credit will be available to individuals who earn up to $75,000 and couples earning up to $150,000.
From there, the credit will be reduced by $50 for every additional $1,000 of adjusted gross income earned. That means, for example, the $3,000 credit provided to parents of a child aged 6 to 17 would be phased out completely for individuals earning $95,000 and those making $170,000 and filing jointly.
Families who are ineligible for the new $3,000 credit because they earn higher AGI are still able to claim the $2,000 per child tax credit, which is available to individuals making up to $200,000 ($400,000 for married couples filing jointly).
NutterButter
Footballguy
They just need to raise this another 8K and I'll be breaking even.
