- Nov 26, 2014
Credit or not, do you not see how you are paying for it out of your own pocket?I don't think you're interpreting that correctly. Every year I get a tax credit for my kids, the child tax credit. That's money that directly lowers the amount of money I owe the government, dollar for dollar.
From what I understand this is simply me getting a new tax credit now instead of waiting until I file my taxes. So it's an advance on a credit that I would have filed for when I did my 2020 taxes.
I'm not certain I'm right but I'm not certain you are either, so that's why I'm hoping someone that's experienced with this sort of thing can make sense of it for us.
That part about paying it back you referenced isn't relevant. That is stating that if you filed your taxes for 2019 they will use that filing to see if you qualify for a credit. If you make more money in 2020 than you did in 2019 and would not have qualified for a credit based on your 2020 income, they are saying you likely won't have to pay it back.
You get the advancement now, instead of later.
The government is taking from your future, to give to you today. It's like a no-interest loan.
You are getting more today, so you can get less in the future.
Whatever the credits would have given me in 2021 for my 2020 return, will now be less that same amount I am getting today from the checks they send out.
If that meant I would have gotten $3k normally in 2021 for 2020, that means I'm getting way less now because those credits won't be there, thus something more likely to be nearer $1800 potentially. For sure not the $3k.
Everyone in the streets living hand to mouth before corona is running around wild claiming they gonna get some money and happy days are here again. I posted because this is nothing more than your own money coming to you now, that you wont have later instead of some free check coming to your mailbox that has no payback.
You basically pay it back in 2021 for 2020.