Core Financial Resources

2021 Child Tax Credit (4th Stimulus?)


2 min read

As part of President Joe Biden’s $1.9 trillion coronavirus relief package, eligible families can receive as much as $3,600 for each child under the age of 6. This represents an 89% increase over 2019’s amount. For children between ages 6 and 17, the credit is now $3,000. Previously children age 17 were not included in the Child Tax Credit at all.

Additionally, Congress has asked the IRS to sent part of this increased credit to taxpayers monthly beginning July of 2021. Some media outlets have called this a 4th stimulus. Beware that these payments are VERY different than the earlier 3 stimulus payments.

  • If you take the child credit check now rather than at year end your tax refund will be reduced because you already received the money. Many people who plan on that refund will get a surprise at year end.
  • What happens if you get the tax credit and are not entitled to it because the child is no longer your dependent at year end? You get the pleasure of paying the money back to Uncle Sam after you already spent it.
  • We also don't know how IRS is going to notify you at year end how much tax credit you already received so if your records don't match theirs when you file your tax return, things get held up until you and IRS agree on the credit already received.

For most people, we recommend opting out of the payments via the IRS website: . Unfortunately the IRS did not give us much advance notice of the opt-out procedure. We’ve personally gone through the process and it worked. However, we’ve heard stories of others having difficulty. Don’t expect the process to be speedy. When you start, make sure you have your cell phone, your patience, and your tech savvy friend/spouse.

Finally, note this is all temporary. The increased tax credit AND these payments are set to revert back to their old ways for 2022 unless Congress acts. We understand extending these benefits is a high priority for the current administration.

Notice: This generic information is not intended to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary (by industry, entity type, and locale), consult your accountant, lawyer, and/or HR expert for specific guidance.
Scott Patterson

Scott Patterson


Share this page via

It only takes 10 minutes to see if we’re a good fit.

In just ten minutes you can see if it makes sense for us to work together. No pressure, no sales tactics. Tell us about what’s working and not working for you. If we can help, we’ll schedule another time to go deeper with you.

Schedule "Good Fit" Call

Related Articles

Keep reading. Never stop learning.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Check the background of your financial professional on FINRA's BrokerCheck Avantax affiliated advisors may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC, Investment Advisory services offered through Avantax Advisory Services℠,Insurance services offered through an Avantax affiliated insurance agency. 3200 Olympus Blvd., Suite 100 Dallas, TX 75019 972-870-6000.

The Avantax family of companies exclusively provide financial products and services through its financial representatives. Although Avantax Wealth Management℠ does not provide or supervise tax or accounting services, Avantax Representatives may offer these services through their independent outside business. Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management℠ or its subsidiaries. Avantax Wealth Management℠ is not responsible for and does not control, adopt, or endorse any content contained on any third party website.

This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Investments & Insurance Products: Are not insured by the FDIC or any federal government agency- Are not deposits of or guaranteed by the bank or any bank affiliate- May lose Value

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Indexes discussed are unmanaged and you cannot directly invest into an index. Past performance is not a guarantee of future results.

Links provided from this web-site are strictly for informational purposes and are not an endorsement or recommendation of the site, company, content, or its sponsoring organization by Avantax or its affiliates. Firm Name provides these links as a convenience to you, and has not tested any software or verified any information found at such sites. Risks are associated with the use of software and the information available on the Internet and you acknowledge and understand these risks before using any of these services.

Avantax Investment Services℠ and Avantax Advisory Services℠ are not affiliated with Wymer Brownlee Wealth Strategies.

Copyright © 2024 Core Financial Resources.