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Child tax credits – be careful before you spend it

To the editor:

President Biden just sent my husband and me a nice note about how we’ll start receiving monthly “child tax relief payments automatically.” We “do not need to take any new actions.”

I beg to differ. This is money that previously balanced out our income tax burden. We now need to save money for taxes and/or change our withholding to be sure that we won’t owe taxes at year end.

Since we will receive only half the payments (six months) this year and the child tax credit was increased (for 2021 only) from $2,000 to $3,600, the increase will partially balance the tax situation this year.

But beware especially 2022 when we will receive payments all 12 months and the credit returns to $2,000. Families should be very careful before spending this “free money”.

Plan ahead for your new tax situation.

And please think carefully before voting.

Jennifer Rabaey

Marshall

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