Pilot Money Guys:

Flight #11: How Much Is Your Kid Worth? 2021 Child Tax Credit Payment

We apologize for interrupting your regularly scheduled podcast program. We have BREAKING NEWS! What is up with the new American Rescue Plan (ARP) CHILD TAX CREDIT payment?

There is a new increased Child Tax Credit Payment via the American Rescue Plan (ARP) that’s paying out right now. Like many of us, you may have received a payment that you weren’t expecting.

Will you have to pay it back?
Will it cause your tax bill to be higher in April?
Should you spend it now?
What’s the difference between the new increased ARP Child Tax Credit and the previous version of the Child Tax Credit?

Typically, taxpayers with income under $400,000 MAGI, married filing jointly, received a $2,000 tax credit per child under the age of 17 to offset your tax bill. This year, instead of getting the credit on your taxes, a portion of the credit will be paid out in advance over the next 6 months. If you count on the tax credit to offset your tax bill, you could be in for a big surprise!

In this podcast, Leading Edge’s Co-Founder and CFO, Kevin Gormley CFP®,CPA aka “The Professor” covers all the details of the new increased Child Tax Credit as well as the existing credit. Plus, everything you need know to NOT be surprised at tax time!