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Child tax credit impact

By Terry Savage on July 14, 2021 | Economy & Taxes

How does this new child tax credit affect my tax return? And will this affect being able to qualify for the earned income credit?

Terry Says

No, presuming you meet the income limits otherwise, this will have no bearing on taxes owed. It is a REFUNDABLE CREDIT that they are starting to pay out early — instead of having people wait until next April, 2022 when they file their 2021 return. (They are just trying to get money into the economy and help people now.) And it will not impact your Earned Income Tax Credit.

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