KSL INVESTIGATES

The catch with those advance child tax credit checks that might surprise parents

Nov 22, 2021, 6:15 PM | Updated: Nov 23, 2021, 7:33 am

SALT LAKE CITY — They call it the Great Resignation — millions of Americans are changing jobs to make more money. If you are one of them, now is the time to start thinking about how that change will play out in a couple of months when you file your taxes – especially for parents who are getting monthly child tax credit checks.

Millions of Americans have been receiving an advance of the child tax credit. Rather than get it at tax time, federal officials have been dolling it out early to qualified parents.

Therein lies a catch, warn CPAs.

“The amount you get is based on either your 2019 or your 2020 filing,” said Susan Speirs, president of the Utah Association of CPAs.

The KSL Investigators asked her to weigh in on the fact that a lot of parents have changed jobs and income levels since qualifying for the child tax credit. She expects a lot of people are going to be surprised to learn that they have been receiving money for which they no longer qualify.

“If you received more of the child advance child tax credit than you should have, then you’re probably going to — you may be paying some of that back,” Speirs explained.

If you are concerned that you might owe some of that credit, the bad news is that it is too late to tell the Feds not to stop sending any more advance child tax credits this year. It is not too late to make a plan for when Uncle Sam does come calling.

“Be consciously saving for any potential tax liability,” Speirs recommended.

This could be especially problematic for gig workers or hospitality workers who saw their income dry up in 2020 because of the pandemic.

Many of them are now doing much, much better financially.

KSL 5 TV Live

Top Stories

KSL Investigates

(KSL TV)...
Daniella Rivera, KSL TV

Tracking Transparency: Why some Utah lawmakers use private email accounts for government business

Are Utah’s lawmakers skirting transparency? The KSL Investigators surveyed legislators to find out why some prefer to use private accounts and devices to do public business.
5 days ago
...
Matt Gephardt & Sloan Schrage, KSL TV

Business takes your money then abruptly shuts down; now what?

Imagine paying a deposit for expensive furniture, only to have the company vanish before you get your stuff. It has become a familiar experience for several Utahns who bought furniture from a Bluffdale store.
7 days ago
Several regulators – foreign and domestic – are cracking down on repair restrictions imposed by...
Matt Gephardt & Sloan Schrage, KSL TV

Repair or replace: The shortening lifespan of consumer goods

As the adage goes, stuff just isn't made the way it used to be. KSL Consumer Investigator Matt Gephardt found there is some powerful evidence it’s true.
8 days ago
FILE PHOTO of workers (Adobe)...
Matt Gephardt, KSL TV

4-day workweek gaining momentum; why employers are smitten with idea

SALT LAKE CITY — While it may sound like the beginning of the end for a company, that work-life balance has some companies saying they wish they had made the switch to a four-day workweek a long time ago. Bosses have tried increasing pay, increasing benefits and increasing flexibility with work-from-home opportunities. But none of […]
12 days ago
...
Mike Headrick & Cindy St. Clair, KSL TV

Locked out: Fishermen upset by new gate at Pineview Reservoir

Unlike years past, something stood in the way of the fishermen: A newly installed gate at the popular Port Ramp boat launch area.  
13 days ago
Jason-Paul Delue tells KSL's Matt Gephardt that he discovered the power company had installed a dev...
Matt Gephardt & Sloan Schrage, KSL TV

Orem man says power company installed remote switch to limit his A/C without his permission

For years, Rocky Mountain Power has installed switches on A/C units that allows it to remotely toggle off the air conditioning to save energy during heat waves. It has always been a voluntary thing, but an Orem man says one was installed on his A/C unit without his permission.
14 days ago

Sponsored Articles

Earth day 2022...
1-800-GOT-JUNK?

How Are You Celebrating Earth Day 2022? | 4 Simple Ways to Celebrate Earth Day and Protect the Environment

Earth Day is a great time to reflect on how we can be more environmentally conscious. Here are some tips for celebrating Earth Day.
Get Money Online...

More Ways to Get Money Online Right Now in Your Spare Time

Here are 4 easy ways that you can get more money online if you have some free time and want to make a little extra on the side.
Lighting trends 2022...

Lighting Trends 2022 | 5 Beautiful Home Lighting Trends You Can Expect to See this Year and Beyond

This is where you can see the latest lighting trends for 2022 straight from the Lightovation Show at the Dallas World Trade Center.
What Can't You Throw Away in the Trash...

What Can’t You Throw Away in the Trash? | 5 Things You Shouldn’t Throw in to Your Trash Can

What can't you throw away in the trash? Believe it or not, there are actually many items that shouldn't be thrown straight into the trash.
Make Money Online Easily...

4 Ways that You Can Make Money Online Easily in Just a Few Clicks

Here are 4 ways that you can make money online easily in no time at all! Some are as simple as just a few clicks away.
tips to winterize your home...
Bonneville Digital SLC

Tips to Winterize Your Home | The Top 5 Ways You Can Prepare for the Cold Utah Winter Ahead

Before the snow hits, here are the top 5 tips to winterize your home to prepare for the cold Utah winter this year.
The catch with those advance child tax credit checks that might surprise parents