Christmas in July? Money from the Feds hits YOUR Bank Account

Many listeners will find new money marked Federal Tax Refund in their checking accounts. If you are the kind of person who usually owes at least some federal taxes, this is your tax credit that would normally reduce what you owe next April 15th; at least at this point, this is not “extra” money like previous stimulus payments.
What can you do?

First, check the bank account where you normally pay your taxes or receive your tax refunds and see if you’re getting these payments. Most people are.

Second, consider whether you want to opt out even if you’ve already received the first payment. Go to Work Pants Finance.com/36 for expanded notes from today’s show, including a link to the IRS website to opt out of these payments.

Third, run a tax projection for 2021 and determine what you will actually owe in taxes for 2021. Then, whether you keep these payments or turn them down, make sure that withholding from your paychecks, or quarterly payments if you’re self-employed, satisfy the taxes you’ll owe for 2021 by December of 2021.

For more information, visit the show notes at https://Workpantsfinance.com/36