Breaking News
More () »

Financial advisor offers advice to families set to receive advance child tax payments | Money Smart

A financial advisor breaks down how the payments work, and why you should be cautious with how you spend it

PENNSYLVANIA, USA — Families will begin to see monthly payments from the IRS. Qualifying families with children under the age of 18 will begin to see monthly payments beginning July 15th. The money is part of the advance Child Tax Credit payments in the American Rescue Act passed under President Joe Biden. 

 "Maybe they're behind on their bills, struggling to put food on the table," said Dan White, Dan White & Associates. "It's going to be a godsend for those types of families."

The advance Child Tax Credit payment amounts will be half of the estimated 2021 Child Tax Credit. For qualifying families with children five and under, you'll receive $300 per month for the next six months. For families with children ages six to 17, you'll receive $250 per month for the next six months. 

"This is one thing I think is going to be very overlooked," said White. "This is just an advancement of a tax credit. it's not free money." 

White reminds families these are advanced payments, which means come tax time, you won't get as much money back as you may expect. 

Beginning today families will begin to receive advance Child Tax Credit payments. I spoke with Dan White, from Dan White & Associates, about what parents should know as these payments begin. https://www.fox43.com/article/news/local/financial-advisor-offers-advice-to-families-set-to-receive-advance-child-tax-payments-money-smart-irs-how-much-will-i-receive/521-3f7eaec7-0ef3-4d4b-b472-295b2854ea3f

Posted by Chelsea Koerbler on Thursday, July 15, 2021

"If you generally owe money on your taxes and now next year when you file and you're missing some of your tax credit, you're going to owe even more," said White. "So don't take your kids to Disney World, because you're really just spending a future tax credit." 

More information on the advance Child Tax Credit can be found here. 

Download the brand new FOX43 app here.

Before You Leave, Check This Out