The IRS is set to begin advanced payments of the enhanced child tax credit (CTC) on July 15, and 88% of families with children in the U.S. will get the benefit automatically, the agency recently announced. The enhanced credit, a component of President Joe Biden’s American Rescue Plan (ARP), increases the existing tax benefit eligible [...]
The Internal Revenue Service will begin issuing refunds this week to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan later excluded from taxable income. The IRS identified over 10 million taxpayers who filed their tax returns prior to the American Rescue Plan of 2021 becoming law in March and [...]
There have been important changes to the Child Tax Credit that will help many families receive advance payments starting this summer. The American Rescue Plan Act (ARPA) of 2021 expands the Child Tax Credit (CTC) for tax year 2021 only.The expanded credit means:The credit amounts will increase for many taxpayers.The credit for qualifying children is [...]
For those of you who had unemployment in 2020 and filed prior to mid-March, you probably paid taxes on the full amount of unemployment. The tax law changed to exclude the first $10,200 of unemployment as taxable. For a married couple there is a $10,200 exclusion for each person. The IRS is stating that you [...]
The EITC usually affects the lower income earners with children, but even if you do not have children, it is possible you qualify for the additional credit. Keep in mind that unemployment is not earned income, therefore does not count toward qualifying for the EITC. I believe many people will be surprised when they file [...]
The IRS announces they will be open for filing 2020 taxes on February 12th. Those who claim Earned Income Credit and possibly additional child tax credit should not expect refunds until March. Most other filers can expect a refund within 21 days of e-filing AND the IRS strongly encourages using e-file and direct deposit. Here [...]
Due to the COVID-19 pandemic there is a change in the tax filing law for 2020 filings. If you qualify for the Earned Income Tax Credit, you will have the option to use 2019 or 2020 income. With many Americans having reduced income in 2020, their EITC could be significantly reduced. By using a tax [...]
The IRS offers guidance on the Revenue Ruling now allowing PPP deductions. Read more directly from the IRS.
THE IRS AGAIN ANNOUNCES THAT THERE WILL BE DELAYS ON REFUNDS FOR THOSE WHO CLAIM THE EARNED INCOME CREDIT AND/OR ADDITIONAL CHILD TAX CREDIT. READ MORE DIRECTLY FROM THE IRS
The IRS has the website up and running to check both your first and 2nd stimulus payments. This may be particularly helpful when filing your 2020 taxes AND you cannot locate your NOTICE 1444 - the letter signed by Trump. When filing your 2020 taxes, you will have the opportunity to reconcile the stimulus [...]
