It’s for families making 400K joint/ 200k single who file and receive the
child tax credit. It is written that families receive at least 1/2 of the credit
July 2021- Dec 2021 in payments, the remainder will be in the form of
a credit on taxes. This isn’t anything new, other than the early payments.
People making up to $75k single or $150k joint will get the full amount. After that it will be reduced down according to how much you make. The child tax credit used to be $1000 per child under 17 with income restrictions, a few years ago they upped that to $2000 per child, now for this year (has not been approved beyond that yet) children under 6 will get a $3600 tax credit and age 6 to 16 will get $3000 tax credit. Half of this will be handed out in monthly payments unless people opt out and take it in a lump sum with their tax returns. The issue is similar to the tax cuts Trump made where people had less taxes taken out each pay period, when it got to tax return time people where shocked that their tax return went down or that they owed money. They had actually gotten more money but unknowingly spent that money each month. It is a crazy amount of money for the government to be handing out, somebody has to pay for it at some point and time. $2000 works out to about $5 a day, enough to feed a child if done right. It already cost about $150k to send a child to school kindergarten thru 12th grade. Then the parents can also file head of house hold and write off the children as dependents lowering the amount of tax they pay in. So by the time a child is 18 the government may have lost $300,000 plus per child. How long would it take someone to pay that money back in taxes plus all the other things the government spends money on? Most of the time I would guess they would never recover all that money prior to start to pay out the social security for those children who would retire before paying off all the expenses the government shelled out for them. The only thing that has saved us in the past is inflation. What used to cost a $1 is now $4.50 so the amount paid years earlier is not as much relative to today. The sad thing the US has taken on so much debt, and continues to take on more debit. While in the global market the dollar is losing value because the US is buying more from others then they sell to others. People no longer have pride in what they do for a living, or a work ethic, it has become give me, give me, give me. Debit can be a good thing if done right, however the reckless spending by the government will catch up. Many people have trouble making ends meet because of the amount of taxes they pay. Then there are the hidden taxes we pay. When a corporation pays tax it's the customers that actually pay that tax. There are also many hidden sales taxes. The government is just not good with money.