New Bill! Full Details on $300/month Child Tax Credit! [Stimulus Check Bill]

hey everyone me kevin here the new text

of the next stimulus bill is

out this is the text put together by the

house of representatives

in the last video in the series we went

through the stimulus check portion

in this portion we're going to go

through the child tax

credit i'm going to show you the actual

law and kind of how they're thinking of

implementing this

in terms of you getting monthly versions

of stimulus checks

based on how many children you have

let's get right into it right after i

mentioned that if you want to get a

totally free 250

and open an account to invest in

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and to block fi all right folks let's

get into the content so here we go

the child tax credit is on 475 or page

475

of this bill this bill has not passed

yet

but this is the current verbiage that we

have and we expect

something substantially similar to this

to pass so we're going to go through it

so the way this works is this child tax

credit begins

after 2020. why this is important is

because if you're thinking oh my gosh i

want this tax credit

should i wait to file my 2020 taxes the

answer is

no because this tax credit does not

exist until 2021

and even though you're filing your 2020

tax return in 2021

you don't get a tax credit because this

doesn't exist

in 2020 at least this version of it a

smaller version of this

does exist okay so here's how this works

basically

you are going to get a refundable

tax credit for children so the way this

works is they're taking the current

child tax credit that exists which is

a two thousand dollars if you have two

children one thousand dollars per child

but anyway what they're doing is they're

taking the current credit

of one thousand dollars here per child

and then they're going to

increase that to a new amount and we're

looking at

three thousand dollars for any child

aged

6 to 17 and it will also include

17 and there's a section here indicating

that right now

you do not get the tax credit if you are

if you have a 17 year old

that basically you would have to be

under 17 but the rule has now changed to

under 18 at least proposed by this bill

then we have thirty six hundred dollars

going to any child between

zero and uh basically five not

yet attained the age of six i don't know

why they use bizarre verbiage like this

but that's why you see 18 over there

but it's really 17 and under okay

so how this is going to work is

depending on how many children you have

you are going to get a check for 1

12 of the amount you are owed now here

they tell you if you're eligible for

this tax credit based on your

income basically for every one thousand

dollars that your income is over these

thresholds the credit will go

down by 50 and here is how the

thresholds

work you can see these on screen here

these are actually the same thresholds

roughly the same thresholds that we have

for the stimulus checks

except the stimulus checks have the hard

cutoffs

whereas these do not these have a cutoff

of losing fifty dollars per one thousand

dollars you make more

which is the same cut off as the very

first stimulus check

and the six hundred dollar check but not

the new fourteen hundred dollar check

if you wanna know more about the

fourteen hundred dollar check make sure

to watch my video breaking down the

version of this bill

where we talk about the six of this 1400

stimulus checks

in the next video i'll be talking about

the unemployment section as well so this

will be a series you can see the

stimulus playlist

for more of those videos now here's how

they're going to

provide this money to you they're going

to provide you

1 12 of the annual advance amount

per month they're going to make monthly

payments to you now you're going to have

an option i'll show you the option

in just a moment but basically here's

just a quick example

as to how this works let's say you have

two children that are 10 years old okay

we're gonna do two times three thousand

that equals

six thousand dollars that you're owed

but let's also say you have a toddler

you've got a three-year-old and so

that's basically going to be

a one not three so take that

three-year-old even though they can feel

like they're three humans

you're going to take one and multiply

that by 3 600

there you go and now we're going to add

these two numbers together here

and so that would make you eligible for

9

600 and then all you need to do is

take that amount and divide it by 12 and

i'll show you how

the government plans on giving this to

you so divided by 12 that gives you 800

per month so 800 is the monthly amount

you're expecting to get

from this tax credit which when you get

this as a tax credit it means you're

not getting the previous child tax

credit against your tax refund

so keep that in mind even though the

amount is going up you're losing a

little bit potentially from your

tax refund in the 2021

filing season when you go to file your

21 taxes but you're not going to have to

wait until

april of 2022 to get this money because

the government

and this is this part is not in the bill

but the government is currently planning

on starting to send these checks july

first if this bill passes so that way

they're providing you six months of

these monthly payments

uh starting july 1st so you in this

example you'd get

800 then 800 in august 800

in september 800 october november

december

then when you file your taxes at the

beginning of next year you'd get the

second half

as part of your tax return but in

january

you'd be getting that 800 again it would

just kind of keep going on a monthly

basis

now there is an expiration to this and

that expiration is still being debated

in terms of

how long are they going to keep this

stimulus uh program going with the

advancement of the child tax credit

but it's a pretty good tax credit i mean

800 bucks a month if you've got three

children in this example

not bad uh and so we're going to go

through some of the legalese here

i want to just give you basically the

bottom line of some of the things they

say here

if your income goes up or down uh the

irs

or treasury department they might either

notice that or they might ask you to

report that to them so

kind of like unemployment where you're

reporting them kind of or telling them

what your income is like

uh and then they might adjust your

monthly amount depending on

you know maybe you had a child okay now

it's time for you to get more monthly

money

uh maybe you uh you had a child that

turned 18

and now technically you're supposed to

get less money uh and i rent through the

legalese i don't want to go through

like reading all of this verbiage but

there is a section that says

if you are overpaid technically

you got to repay that when you file your

taxes

so this is different from the stimulus

checks because in the stimulus checks

if you got overpaid you keep it but this

and there is a safe harbor that gets a

little complicated how they've got the

rules set up

but basically if you're getting overpaid

you probably are going to have to pay

that back and

they're doing that to incentivize you to

basically just keep them up to date

and the way they want to do this is kind

of interesting a quick note over here

uh and see here take a look at this the

secretary may adjust

the amount of any monthly payment made

after the date of such modification to

take into account

changes again you know birth of child uh

they've even

and this is terrible but they've even

got death of child uh but they do

in terms of death of child they go by

beginning

of the calendar year uh which does sort

of imply

in such a horrible scenario that that

payments might continue

uh but uh you know i don't even want to

think about that uh

we're just going to keep going instead

we're going to go over here to uh

congress spelling online on hyphen line

which is something that hasn't been done

since the 90s according to the chicago

manual of style and the associated press

guides

but anyway online information portal

will be created

this is potentially one of the reasons

they're not going to start sending out

these funds

until july 1 because they've got to set

this portal up and basically they're

trying to buy themselves three months to

do it

which quite frankly i wouldn't be

surprised if they can't manage to get it

done by then either because they're

freaking ridiculous

but anyway in this portal you're going

to be eligible for

selecting whether you want to receive

the payments

or not you'll be able to provide

relevant information for a modification

and payments again like a birth of child

or other factors

uh and uh at the end of uh or at the

beginning of every next year so by

january 31st of the next year

you would get a letter basically letting

you know for tax filing purposes this is

how much we gave you

so that way you can reconcile that on

your taxes

obviously they they are provided the

authority to adjust your payments

but they're also a look at this this is

interesting

such payments shall be made on the basis

of the shortest interval which the

secretary deems administratively

feasible

but that means if they can't figure out

how to get this program running to where

they're paying you a check

every month maybe they they might go to

every two months or every three months

they're kind of just creating this as an

option here i

uh because here if the secretary

determines that it is not

administratively feasible

to make monthly payments then you should

go with whatever shortest alternative

there is which so so what i'm trying to

say with this is even though right now

we're expecting monthly payments

let's see if that actually starts

rolling who knows maybe they start

sending out like

here's your half year payment or your

every quarter payment which would just

be stupid like

just get it out every month i can't

imagine it's so terribly difficult

and they are the government after all

they have a money printer figure it out

so anyway application of direct deposit

requirement

of delivery of payments they want to

disburse the funds electronically into

any account that's authorized

or a treasury sponsored account there is

uh let's see

they okay so they've got the same

verbiage in here

for exemption or exception from a

reduction or offset

this is just a fancy way and we talked

about this in the 1400

stimulus check video it's just a fancy

way of saying they don't want this to be

garnished

for debts or other claims or even child

support this is the same verbiage they

used for the 600

stimulus checks and i'm 95

sure that child support was uh was in

included in this verbiage they've redone

it the verbiage and the 600

check bill was different and this legal

use is very difficult to read and

understand

but what you can do is if you want to

double check or make sure that just take

a screenshot of this page right here

and then look up these different

sections here although i can tell you

you will probably get bored very quickly

because it sucks

i don't know why they can't just speak

and play in english it blows my mind but

i can tell you in plain english

that you can get up to 250 dollars with

block five when you deposit money with

them by going to bed kevin.com

bf okay let's keep going here so the

amount of the credit

allowed under this section to any

taxpayer for any taxable year

shall be reduced but not but not to

below zero by the aggregate amount of

payments made so in other words

when you go file your payments or your

taxes let's say you're owed

9 600 but they already paid you i'm just

gonna make a number up

they already paid you 4 300

okay so that's not half right it's a

little less than half but i'm just again

making a number up here

uh well then technically you're still

owed

5 300 and you could get that on your tax

return uh and and here's where they talk

about excessive payments

where essentially if if you get overpaid

uh then then you might have to be

prepared to pay that back

so they got safe harbor provisions on

the next pages here

let's see here uh this does begin

after uh 2020. so this is where they

mentioned that as well so we want to be

clear then we get into more legalese and

then we get into the earned income tax

credit which is a topic for

a different video uh but keep in mind

this is something that if passed they're

planning on starting

july 1st there'll be some form of an

online portal

and uh you'll basically get this

essentially free money it's tax credit

based on the number of children you have

which if you also want some extra free

money make sure to go to weeble

if you deposit a hundred dollars with

weeble they will give you two free

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both

if you deposit a hundred dollars with m1

finance by going to med kevin.com

m1 they will give you thirty dollars

totally for free

so the links you want to remember

mattkevin.com bf medkevin.com

weeble and medkevin.comm1 thanks so much

for watching folks we'll see in the next

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