Corduroy Frog Posted June 25, 2021 Report Share Posted June 25, 2021 On 5/20/2021 at 8:56 AM, BulldogTom said: But then again, the President and Congress could decide that this is still unprecedented times and forgive the payback on the tax credits and allow UI to go untaxed for another year. We saw it before and we may see it again. Tom, what if this really does happen? (And you're right, it absolutely could). So we advise our customers to opt out and not receive the advance child credit. They are going to be furious when they realize they could have received the advance credit PLUS the full credit for 2021... And guess who they are going to blame for this advice?? 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted June 25, 2021 Author Report Share Posted June 25, 2021 Who are they going to blame when they owe more/smaller refund next year? Send them to the IRS's Eligibility Assistant to make their own decisions: https://www.irs.gov/credits-deductions/advance-child-tax-credit-eligibility-assistant And, if you're worried about blame, document your interaction with them. 3 Quote Link to comment Share on other sites More sharing options...
TexTaxToo Posted June 25, 2021 Report Share Posted June 25, 2021 The law already provides for a safe harbor of $2000 per child on payback of advanced CTC. Low income taxpayers (AGI < $60000 MFJ/QW, $50000 HOH, $40000 other) will not need to pay back anything. The safe harbor phases out for an AGI of double those amounts. The IRS is calling it "repayment protection": https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-h-reconciling-your-advance-child-tax-credit-payments-on-your-2021-tax-return#collapseCollapsible1624567062314 Quote Link to comment Share on other sites More sharing options...
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