It sucks if you actually work and pay taxes all year. If you tuned your workplace withholdings to get a small refund each year with that lump sum child tax credit factored in, if the government pays you half of that credit early, now when tax time comes they want all of that money back. And oh by the way, if you owe over $1000 you may incur tax penalties.
Best course of action is to adjust workplace withholdings to compensate. So if you're getting $400/month in advanced child tax credit, have your work withhold an extra $400/month in taxes. The other option is to opt out, but that is a PITA and both parents have to do it.
Is there any way cashing it could come back and bite you? I can't think of any.
It sucks if you actually work and pay taxes all year. If you tuned your workplace withholdings to get a small refund each year with that lump sum child tax credit factored in, if the government pays you half of that credit early, now when tax time comes they want all of that money back. And oh by the way, if you owe over $1000 you may incur tax penalties.
Best course of action is to adjust workplace withholdings to compensate. So if you're getting $400/month in advanced child tax credit, have your work withhold an extra $400/month in taxes. The other option is to opt out, but that is a PITA and both parents have to do it.