I Feel Guilty...I need to vent...

[mistysue]

I have a just turned 18 year old. I knew when they passed the new tax code in 2017 that I would not get the child tax credit for him on this years taxes. If things stay as they are my 16 year old will be aged out when I do my 2023 taxes. None of this is a surprise. It’s the same rules for everyone so I’m not sure how the “it’s not fair rants” are justified.

It just stating it's stupid, and yes, unfair. The conversation is justified by a strange exception for kids born in 2004 that is silly and unfair to kids around that year. It's unfair to you too.
Plus, if you have a 16 year old, they would "normally" be aged out when you do your taxes for 2021 (if an early birthday) or 2022 (if they turn 17 next year)

 

[DCLMP]

It just stating it's stupid, and yes, unfair. The conversation is justified by a strange exception for kids born in 2004 that is silly and unfair to kids around that year. It's unfair to you too.

There has to be a cutoff at some age. Someone is always going to think it’s unfair.

 

[DCLMP]

I don't really hear ranting. Just weird that kids turning 17 last year got $500. Kids turning 17 this year get $3,000. Kids turning 17 next year will get $500. And my 16 year old will be aged out in 2023 when I do my 2022 taxes as far as I know.

I don’t think it’s weird it’s just a change in the law. There are new people in power and it could all change again two years. I’m grateful to get the 3k at least for a year.

 

[havaneselover]

I don’t think it’s weird it’s just a change in the law. There are new people in power and it could all change again two years. I’m grateful to get the 3k at least for a year.

It's a change in the law only for kids born in 2004. Not in 2003 or 2005.

Moving on...

 

[DCLMP]

It's a change in the law only for kids born in 2004. Not in 2003 or 2005.

Moving on...

Before 2017 we didn't have this big child tax credit and standardized deductions We all itemized. Then it changed and it will most likely change again and again and again. In two years you and I won't even care because all of our kids will be adults.....yes time to move on. Personally I think everything going on these days is nuts, but you just got a play along or you'll go nuts.

 

[AZMermaid]

We are on the opposite side. we barely qualified for a partial stimulus based off 2019. So we wouldn’t get anything in this one. But, My husband was out of work for about 6 months in 2020, not exactly due to Covid, but he was one interview away from the job he eventually got in March. Then they froze hiring until July and nothing turned up in the meantime. We were frustrated not to get help in the spring/summer when we needed it, but understood. Anyway, so we knew we’d qualify in 2020 (and were credited as such on our taxes for #1 and 2). We rushed to get our taxes done about a week before the bill was signed. But so far, nothing.

 

[havaneselover]

Before 2017 we didn't have this big child tax credit and standardized deductions We all itemized. Then it changed and it will most likely change again and again and again. In two years you and I won't even care because all of our kids will be adults.....yes time to move on. Personally I think everything going on these days is nuts, but you just got a play along or you'll go nuts.

I don’t disagree. I generally don’t waste my emotional energy on stuff I can’t change. I’m also highly analytical and there’s a difference between discussing something odd and going nuts. But these really are weird times and everything is so inconsistent and defies logic.

 

[PollyannaMom]

We got the first one but not the other two. (We've been doing OK, though, and I would have guilty if they had sent this one.)

It does suck that the timing messed you up, though. - If anyone deserves a break, healthcare workers do!

 

[StuckInKS]

Same here. DD turned 17 in 2020. So last year we got $500. But kids turning 17 this year get $3000???

And I'm one of the lucky few who saw my taxes increase with the last tax cut. It wasn't kind to a lot of single parents.

We had a kid turn 17 in 2020 who will turn 18 later this year. I believe the advance child tax credits (monthly payments from July to Dec) will be based on 2019 or 2020 returns. Since our kid was still 17 on our last return, I think we will still get at least the advance credit portion for her. Now when we file for 2021 and she is 18, we might not get the rest of it, but the advance portion is still more than $500.

 

[DLgal]

There is a growing consensus to make the child tax law change for this year permanent. It will likely happen.

 

[DCLMP]

We had a kid turn 17 in 2020 who will turn 18 later this year. I believe the advance child tax credits (monthly payments from July to Dec) will be based on 2019 or 2020 returns. Since our kid was still 17 on our last return, I think we will still get at least the advance credit portion for her. Now when we file for 2021 and she is 18, we might not get the rest of it, but the advance portion is still more than $500.

From what I've read it's based on what your child's age will be Dec 2021. They use the returns just for income verification. The cutoff is 150,000 for married couples. You will not get anything for your 18-year-old nor will I.

 

[DCLMP]

We are on the opposite side. we barely qualified for a partial stimulus based off 2019. So we wouldn’t get anything in this one. But, My husband was out of work for about 6 months in 2020, not exactly due to Covid, but he was one interview away from the job he eventually got in March. Then they froze hiring until July and nothing turned up in the meantime. We were frustrated not to get help in the spring/summer when we needed it, but understood. Anyway, so we knew we’d qualify in 2020 (and were credited as such on our taxes for #1 and 2). We rushed to get our taxes done about a week before the bill was signed. But so far, nothing.

Hopefully, you can deduct it on your 2021 taxes and get a bigger refund or owe less. Since we owe taxes our stimulus is going right back to the IRS. The same thing happened last year, but it's nice to get money from the IRS to pay the IRS. That sounds so weird.

 

[StuckInKS]

From what I've read it's based on what your child's age will be Dec 2021. They use the returns just for income verification. The cutoff is 150,000 for married couples. You will not get anything for your 18-year-old nor will I.

Are they also phasing out the $500 that we got for her this year. We have 5 more that we will get it for, but another will phase out for 2022 (he turns 17 this year) if they extend this. It is unfair, but someone is always one the losing end. At one point we had 4 kids under 6 and 2 more who were 7 & 8 and received barely any child tax credit because 1) it was only $1,000 for and 2) it was limited to 3 kids. People in that situation now will get $20,400 fully refundable, instead of the $3,000 we got.

 

[DCLMP]

Are they also phasing out the $500 that we got for her this year. We have 5 more that we will get it for, but another will phase out for 2022 (he turns 17 this year) if they extend this. It is unfair, but someone is always one the losing end. At one point we had 4 kids under 6 and 2 more who were 7 & 8 and received barely any child tax credit because 1) it was only $1,000 for and 2) it was limited to 3 kids. People in that situation now will get $20,400 fully refundable, instead of the $3,000 we got.

I don't think they are getting rid of that. My kids are almost all adults so I missed out on all the tax credits. It's started with the last administration and then increased this year, but who knows what will happen in the future. I'm not really a fan of all the deficit spending, but that's something we can't get into on this forum.
This year was the most we've every owed in taxes. It's going to be even worse when we have no child tax credits and both kids are in college.

 

[StuckInKS]

I don't think they are getting rid of that. My kids are almost all adults so I missed out on all the tax credits. It's started with the last administration and then increased this year, but who knows what will happen in the future. I'm not really a fan of all the deficit spending, but that's something we can't get into on this forum.
This year was the most we've every owed in taxes. It's going to be even worse when we have no child tax credits and both kids are in college.

I feel for you. We will be in that situation in just a couple years as the older 4 will all age out one after another. Then there is the college tuition for all of them. Will be fun

 

[DCLMP]

I feel for you. We will be in that situation in just a couple years as the older 4 will all age out one after another. Then there is the college tuition for all of them. Will be fun

It's weird the standardized deductions and child tax credits didn't really alter what we owed between the old plan of 2016 and the new plan of 2017, but not having the child tax credit on one kid killed us this year. It seems like under the current tax code people without kids are going to be paying all the taxes.

 

[delmar411]

From what I've read it's based on what your child's age will be Dec 2021. They use the returns just for income verification. The cutoff is 150,000 for married couples. You will not get anything for your 18-year-old nor will I.

I believe this is correct. I've done a few of the online calculators and it shows we would get nothing for our 17yr old (18 in Oct). But we will get the credit for our 16yr old (17 in Oct).

 

[DCLMP]

I believe this is correct. I've done a few of the online calculators and it shows we would get nothing for our 17yr old (18 in Oct). But we will get the credit for our 16yr old (17 in Oct).

Your kids are the same age as mine. I've read they are going to send out monthly checks starting in July and then I'd have the 1500 tax credit next April. Personally I'd rather just get the 3k write off next year. I just got a new job so by 2022 we'll probably be over the income threshold anyway. It seems like people are going to punished for being successful. Are people making over 150,000 still going to get the 2k write off or do they get nothing? I can't imagine a family making 170,000 a year with 4 kids getting no child tax credit.

 

[DLgal]

Your kids are the same age as mine. I've read they are going to send out monthly checks starting in July and then I'd have the 1500 tax credit next April. Personally I'd rather just get the 3k write off next year. I just got a new job so by 2022 we'll probably be over the income threshold anyway. It seems like people are going to punished for being successful. Are people making over 150,000 still going to get the 2k write off or do they get nothing? I can't imagine a family making 170,000 a year with 4 kids getting no child tax credit.

So, people who make up to the $400,000 max (married, joint) will still get the $2000/child. The higher amount phases out earlier.

Also, the direct payments may not happen after all. But when they were talking about that, they mentioned a portal where you could specifically opt out and just get the full credit amount at tax time.

Instead of waiting for all that, I just adjusted our withholding up to a credit amount of $6000 from $2500 (2 qualifying kids this year, one who turns 17 in July) on the W4 form, and we will get the money starting in our next paycheck. Otherwise we will get a huge refund next year and I'd rather invest that money now.

 

[delmar411]

So, people who make up to the $400,000 max (married, joint) will still get the $2000/child. The higher amount phases out earlier.

Also, the direct payments may not happen after all. But when they were talking about that, they mentioned a portal where you could specifically opt out and just get the full credit amount at tax time.

Instead of waiting for all that, I just adjusted our withholding up to a credit amount of $6000 from $2500 (2 qualifying kids this year, one who turns 17 in July) on the W4 form, and we will get the money starting in our next paycheck. Otherwise we will get a huge refund next year and I'd rather invest that money now.

I haven't heard about the direct payments not happening. I thought these were part of the bill that just passed? I will have to look into it.