MADISONVILLE, Ky. (WEHT) Families across the Tri-State are starting to see those credits in their bank accounts, or have their checks on the way to their mailbox.
Tax preparers have some advice on the best way to use that money.
“Living paycheck to paycheck is hard, but you just do what you do,” said Stephanie Pollard, who manages the Salvation Army Thrift Store in Madisonville. She just got her child tax credit payment of $250. She plans to use the money for groceries, and plans to save some.
“It just seemed like when you are trying to live paycheck to paycheck, it’s helpful to have that in the middle. When you get that, if it’s not needed, you can always have something a little saved,” Pollard said.
“We’ve had one family that will get an additional $1,250,” adds Tina Lynch of the Green River Asset Building Coalition in Owensboro. She says her agency has helped hundreds of families the past three months either sign up to get the payment or opt out. She says the money will be taken out of a family’s usual refund that comes when filing taxes early next year.
“Whatever we get between now and December is going to be subtracted to our refund. If I’m used to getting a $3,000 refund, I’m going to get $1,500 of that. Now at the end of 2021, it will be subtracted from my refund next year,” Lynch explained.
If a parent doesn’t have a bank account, Lynch says they should look towards putting the money in pre-paid debit cards instead of going to check cashing places to avoid high fees, and to encourages more saving.
“If they are already caught in the system, and they have gotten advanced payments, that went to a cash checking system, and they’ve gotten an advance, and they are trying to get out of that, we do try to talk to them about getting that paid off,” says Lynch.