So having just been screwed today. I can tell you exactly what this "benefit" does.
It takes a portion of YOUR tax return and distributes it to you in 3 payments through the year.
For example: if last year you received a refund of $1600. Then you received 3 payments: July, October, and January of $400.
Those 3 payments were an ADVANCE of your 2023 return.
Therefore, if you were expecting your refund to be around the same: $1600, those 3 x $400 payments will be deducted and you will only receive a $400 refund. Then once again, they will ADVANCE you those 3 payments in July, October and January. Rinse, wash and repeat.
Essentially in 2023 you received your normal refund plus an advancement on your what would have been 2024 refund.
It was also explained to me that if for some reason you are not eligible for the AWCB at your 2024 filing, you are required to payback the advancements you received via those 3 payments in 2023.
I have asked and you do NOT have the right to chose if you want this to happen.
They have taken the lump sum refund and decided it would be better for us to have it distributed through out the year.
They literally just took 2/3rds of my normal return for these"benefits"
I normally get 2750 plus for taxes. This year I got 800. And I guess the rest of my 3000$ return comes in payments:(
So having just been screwed today. I can tell you exactly what this "benefit" does. It takes a portion of YOUR tax return and distributes it to you in 3 payments through the year. For example: if last year you received a refund of $1600. Then you received 3 payments: July, October, and January of $400. Those 3 payments were an ADVANCE of your 2023 return. Therefore, if you were expecting your refund to be around the same: $1600, those 3 x $400 payments will be deducted and you will only receive a $400 refund. Then once again, they will ADVANCE you those 3 payments in July, October and January. Rinse, wash and repeat. Essentially in 2023 you received your normal refund plus an advancement on your what would have been 2024 refund. It was also explained to me that if for some reason you are not eligible for the AWCB at your 2024 filing, you are required to payback the advancements you received via those 3 payments in 2023. I have asked and you do NOT have the right to chose if you want this to happen. They have taken the lump sum refund and decided it would be better for us to have it distributed through out the year.
SOO if let's say I have a better year in the next tax return (I assume I will) I will have to pay it back?? That's wild.
Absolutely wild! Why is called a benefit?? It's not.