Cookeville Tax Preparer Recommends Only Taking Child Tax Credit If Necessary

A Cookeville tax preparer is recommending people not take part in the federal Advanced Child Tax Credit program unless absolutely necessary.

Jamie Sims of Nelson/Sims and Associates said while it could be beneficial to some, it could hurt others when it comes to tax time.

“If you’re already making over the $45,000, and you are fine paying your bills the way you are don’t take it,” Sims said. “It will hurt you come the 2021 tax return. When I say hurt you, it could potentially lose your $500 a child.”

Another reason it can hurt participants, Sims said, is because the nature of federal withholding has been revised. Sims said that people tend not to keep track of what’s withheld from their paycheck, so that could affect them at tax season.

Sims said that prior to 2021, the typical child tax credit was $2,000. The federal government increased that for this year, with the credit totaling some $3,000 for children aged 6 to 17, and up to $3,600 for children under six.

Sims said that in doling out the money in increments, it could serve as an incentive for people to spend more, thus jumpstarting the economy.