2021 Advance child tax credit

Forum|Forum|5 years ago
June 9, 2021
2 replies
23 views

Is anyone thinking of opting out of the Advance Child Tax Credit

Lacerte Tax

This topic has been closed for replies.

T

TaxGuyBill

Level 15

I'm sure there are.

However, before advising any clients to opt-out, you really need to knowledgeable about WHY you think they should opt-out, and both you and the client need to be know the disadvantages of opting out.

So I think it boils down to "why" would/should a person opt-out?

K

Kathleen1Author

Level 5

It is definitely going to take some work to determine if clients should opt out. My concern is those who might have had lower income in 2020 because of Covid. If their income goes back up in 2021 and they don't qualify for the advance payments, it won't be a fun conversation when we have to tell them they have to pay back $3,000 or more.

T

TaxGuyBill

Level 15

Income rising above the phase-outs is a valid concern.

However, in my opinion it would be better to warn those clients about the possibility, and if the client is concerned about a repayment they can put the Advance payments into a savings account.

T

tarheelgirl2294

Level 2

I am so sorry to hook up to this but Lacerte would not let me start a new discussion. Does anyone know where I go to stop the advance child tax credit for someone who died after receiving one payment? All I can find is if the dependent dies, not the taxpayer. Single taxpayer who will claim dependent for time up to death.

Thanks so much.