Quote:
Originally Posted by tucker6
The big kick in the a$$ for employers these days is the child tax credit. It's killing the economy more than the extended UI benefits ever hoped to do.
You don't have to be an economist to understand that if someone working 32 hours/week taking home $1,350 a month is offered a child tax credit for her 4 kids totaling $1,150 per month to sit on her backside and not work, she/he will take door number 2 every single time. I would! She can work one day a week and bring home another $400/month, giving her a lot more income for a lot less work. What a scam.
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Child tax credit or earned income credit?
The "increased" child tax credit is more an advance on one's "normal" credit that they get at tax time. You get the full amount up to 100K in earnings IIRC. You will see people with lower refunds this year wondering what happened to their normal 5K-10K they've become used to "free" from the government.
Say you have 3 kids over 6, you're currently getting $750 a month in advance. At tax time, assuming everything else is Zero tax at tax time, you will get $4500 refund (9k child tax credit minus 4500 advances). In prior years when CTC was 2K/kid they'd get $6000. A lot of people will claim they've been shorted, when really they squandered most of it throughout the year.
On the EIC side, you could make a case that it is cheaper and more beneficial to work 1 or 2 days a week collecting EIC credit along with CTC than it is to work a FT job and pay childcare forgoing any EIC.
