How receiving a child tax credit or stimulus check affects your taxes

The video tutorial explains the financial relief measures provided during the pandemic, including the third round of economic impact payments and the temporary expansion of the child tax credit. It details the eligibility criteria, amounts, and the difference between tax credits and deductions. The tutorial also covers the IRS documentation required for tax filing and the potential need to repay some credits if income increased in 2021. Viewers are advised to verify their payments with IRS records to ensure accuracy.

What was the amount of the third round of economic impact payments for eligible individuals?

• $1000

• $1600

• $1400

• $1200

Under the American Rescue Plan, what was the expanded child tax credit amount for children under 6?

• $2000

• $3000

• $3600

• $4000

Which income level disqualifies single parents from receiving the full child tax credit?

• $125,000

• $100,000

• $75,000

• $50,000

How do tax credits differ from tax deductions?

• Tax credits reduce taxable income

• Tax credits have no impact on taxes

• Tax credits increase taxable income

• Tax credits directly reduce the tax owed

What document does the IRS send to detail economic impact payments received?

• Form W-2

• Letter 6475

• Form 1040

• Letter 6419