Reply To: Child Tax Credit Advance Payments

Ujm, what am missing?

Coffee addict, you’ll owe more taxes not because the credit is taxable, but because your tax credit will be smaller since you already received part of it in cash (e.g. if you received $3000 in advance payments, your tax bill will be $3000 more than expected, because your credit will be $3000 less than expected). Also, you file your 2021 tax return in 2022 – not sure what your point was with that.

Shimon Nodel, was that question directed towards me? Because I think I understand it quite well. If I’m missing something please explain it to me. Thanks