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.

Susan Speirs, president of the Utah Association of CPAs, explains to KSL’s Matt Gephardt why income changes could force parents to return some of the money they received through advanced child tax credits. (KSL TV) Income changes could force parents to return some of the money they received through advanced child tax credits. (KSL TV)

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

KSL Investigates

two men sit at a table and look at a phone...

Matt Gephardt

Imposters stealing Utah restaurant names to deceive drivers and customers on food delivery apps

When a popular Provo pizzeria couldn’t get a food delivery app to remove an impostor account, the owners decided to Get Gephardt to investigate.

2 hours ago

Utah’s Supreme Court heard arguments in May 2023 in the first appellate challenge involving a 202...

Daniella Rivera

Utah Supreme Court upholds prior ruling in first challenge of 2021 self-defense law

Utah's Supreme Court sided with a man who fired several shots after a bizarre vehicle crash in the first challenge of Utah's 2021 self-defense law.

9 hours ago

Jen and Tyler Erickson show KSL’s Matt Gephardt sewer water...

Matt Gephardt and Cimaron Neugebauer, KSL TV

Raw sewage floods basements, but who’s responsible for the damages?

A Farmington couple says their home got flooded with raw sewage after a nearby water park drained a pool into the sewer system. Now, they're stuck in a fight over who's -responsible for tens-of-thousands of dollars in damages, so they decided to Get Gephardt.

4 days ago

Joshua Homer appears in court in Weber County on Oct. 18, 2022....

Daniella Rivera and Keira Fairmont, KSL-TV

Rapist at the center of KSL Investigation ‘Failure to Protect’ pleads guilty

Guilty: An accused serial predator in Utah, who’s had more than a decade of allegations against him is now a convicted rapist following a KSL Investigation.

4 days ago

a blue truck with identified with letters "elan solar"...

Matt Gephardt and Sloan Schrage, KSL TV

Utah based Elan Solar sued by state regulators

Lawsuit filed by the Utah Division of Consumer Protection against Utah based Elan Solar

5 days ago

paper work showing charges...

Matt Gephardt and Sloan Schrage

Thieves fraudulently billing Medicare for catheters on behalf of Utahns

Medicare paid out thousands of dollars for a medical device on behalf of a Utahn that never ordered it, let alone received it.

6 days ago

Sponsored Articles

Modern chandelier hanging from a white slanted ceiling with windows in the backgruond...

Lighting Design

Light Up Your Home With These Top Lighting Trends for 2024

Check out the latest lighting design trends for 2024 and tips on how you can incorporate them into your home.

Technician woman fixing hardware of desktop computer. Close up....

PC Laptops

Tips for Hassle-Free Computer Repairs

Experiencing a glitch in your computer can be frustrating, but with these tips you can have your computer repaired without the stress.

Close up of finger on keyboard button with number 11 logo...

PC Laptops

7 Reasons Why You Should Upgrade Your Laptop to Windows 11

Explore the benefits of upgrading to Windows 11 for a smoother, more secure, and feature-packed computing experience.

Stylish room interior with beautiful Christmas tree and decorative fireplace...

Lighting Design

Create a Festive Home with Our Easy-to-Follow Holiday Prep Guide

Get ready for festive celebrations! Discover expert tips to prepare your home for the holidays, creating a warm and welcoming atmosphere for unforgettable moments.

Battery low message on mobile device screen. Internet and technology concept...

PC Laptops

9 Tips to Get More Power Out of Your Laptop Battery

Get more power out of your laptop battery and help it last longer by implementing some of these tips from our guide.

Users display warnings about the use of artificial intelligence (AI), access to malicious software ...

Les Olson

How to Stay Safe from Cybersecurity Threats

Read our tips for reading for how to respond to rising cybersecurity threats in 2023 and beyond to keep yourself and your company safe.

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