CTC with no children

[Possi]

And so it begins. Client called and wondered why she got $500 deposited to her account for "CTC."

Filing status is single. 

She has no children.

We will never be able to un-screw this lightbulb.

[Corduroy Frog]

One interesting possibility might be to conjecture whether IRS will "forgive" excessive CTC payments which were not justified.

[Possi]

18 minutes ago, Corduroy Frog said:

One interesting possibility might be to conjecture whether IRS will "forgive" excessive CTC payments which were not justified.

I told her to keep the money, but to expect to pay it back.... in 2025 when they catch on. LOL

[Lee B]

8 minutes ago, Possi said:

I told her to keep the money, but to expect to pay it back.... in 2025 when they catch on. LOL

Perhaps you should let her know about how to "opt out."

[Lion EA]

My guess is that it'll be reconciled on her 2021 income tax return in 2022, a lot like the RRC worksheet but NOT keeping the excess.

Tell her to opt out. Or buy a nine-month CD to hold the funds until next spring.

[Lee B]

12 minutes ago, Lion EA said:

 

. . . . . Or buy a nine-month CD to hold the funds until next spring.

Yeah, my bank is paying 00.01 %

[Lion EA]

I know, it's more so she won't spend the money...

[Possi]

33 minutes ago, cbslee said:

Perhaps you should let her know about how to "opt out."

She can't "opt out" because when she went to the web site, she "doesn't qualify for child tax credit." 

I'm not even making this up. 

 

[Lee B]

Truly astounding

[TexTaxToo]

I would be wary of scams where a deposit is made (which later turns out to be fake and is cancelled), and the person is called, told it was a mistake, and is asked to return the money via wire transfer or gift cards.

[RitaB]

My first thought is someone with a dependent used the same account for direct deposit.  Maybe a grown child or ex.  

Ok, no, that thought was way down the line.  Let's be honest here.

[Possi]

I did a look-back, and she was the primary TP on the 2019 MFJ return with HIS 2 children on the return. 

We filed the 2020 return on MARCH 7th, 2021.

It looks like the IRS based the CTC on the 2019 return and not the 2020 return. 

How many times will this happen across the nation?PLUS, on the 2021 return, he will most surely be able to claim the entire CTC because HE (likely) never received an advanced payment. I still need to check with him.

 

[Gail in Virginia]

On 7/23/2021 at 2:10 PM, Possi said:

I did a look-back, and she was the primary TP on the 2019 MFJ return with HIS 2 children on the return. 

We filed the 2020 return on MARCH 7th, 2021.

It looks like the IRS based the CTC on the 2019 return and not the 2020 return. 

How many times will this happen across the nation?PLUS, on the 2021 return, he will most surely be able to claim the entire CTC because HE (likely) never received an advanced payment. I still need to check with him.

 

For two children, I think the amount would be $600 per month, so it sounds like they based it on the MFJ return with 2 kiddos and gave her half and him half.  Maybe?  I agree this sounds screwed up, and somehow it will likely be my fault - everything always is. 

[Possi]

On 7/22/2021 at 2:40 PM, cbslee said:

Perhaps you should let her know about how to "opt out."

She can't "opt out" because she doesn't qualify to receive it. She tried. 

 

2 hours ago, Gail in Virginia said:

For two children, I think the amount would be $600 per month, so it sounds like they based it on the MFJ return with 2 kiddos and gave her half and him half.  Maybe?  I agree this sounds screwed up, and somehow it will likely be my fault - everything always is. 

Maybe. They should have based it on the very timely filed 2020 tax year, though.  It's so discouraging and such a mess to unravel.