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grizzy
New Member

expanded stimulus child tax credit

Hi everyone, I am confused about this expanded tax credit that just came across. As of now, I would get a refund of roughly $5000, which we kind of plan on every year. We have two children, and that factors into the return. My question is, it looks like they are repealing the child tax credit, expanding it and paying it monthly? So that means my return now, is going to be drastically cut and I am going to given a stipend instead? I am so confused. I hope this is not the case. We count of the return to pay off a chunk of bills, not really needing it to be managed every month by the government. Changing this 4 days before filing is absurd if that is the case. Am I confused by this? I just cant figure out what is going on here. thanks!

3 Replies
Critter-3
Level 15

expanded stimulus child tax credit

EVERYTHING you have heard is simply talk .... they have not changed anything officially yet.  Until it is passed into law and the IRS can translate it on a tax return  nothing is real. It will not be made retroactive to the 2020 tax return so file at will.  

DoninGA
Level 15

expanded stimulus child tax credit

Nothing whatsoever has been legislated, passed, approved or signed into law concerning the Child Tax Credit.

The CTC on a 2020 tax return is $2,000.

 

If or when anything is approved and signed into law the US Treasury Department and the IRS have to write the rules and regulations for the CTC change.  This can take months.  Then the IRS will provide guidance on how to claim the additional credit, provided the additional credit is even for the 2020 tax year.  It may well be for tax year 2021.

grizzy
New Member

expanded stimulus child tax credit

Ok! thank you! The current news had it sounding like it was "an expansion" payed monthly, versus a one time credit in the return. I couldn't figure out what was happening here.

thank you!

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