↓
 

Lake Wylie Tax Service | Bookkeeping | Payroll Service

Lake Wylie Tax Service | Bookkeeping | Payroll Service

  • Home
  • About Us
  • Services
  • Information
    • Tax News
  • 2020 Tax Organizers
  • Tax Tips & Blog
  • Testimonials
  • Contact Us

Tag Archives: Advance Child Tax Credit

What’s Next for the Child Tax Credit?

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on January 25, 2022 by Lake Wylie Tax Services StaffJanuary 25, 2022

What is next for the child tax creditDecember 15th, 2021 marked the last deposit date for the child tax credit payment expanded under the American Rescue Plan (ARP). Though many had hoped the program would be continued, political leaders are struggling to find a way forward that makes the majority of Congress happy, and as a result, many families have been left waiting and wondering what will come next.

Continue reading →
Posted in Tax Problems | Tagged Advance Child Tax Credit, Childcare Tax Credit

Advance Child Tax Credit and EIP Must Be Reconciled on Your 2021 Return

Lake Wylie Tax Service | Bookkeeping | Payroll Service Posted on January 11, 2022 by Lake Wylie Tax Services StaffJanuary 11, 2022

Advance Child Tax Credit Tax TreatmentEarly in 2021 Congress passed the American Rescue Plan which included a provision that increased the child tax credit amount and upped the age limit of eligible children. Normally, the credit was $2,000 per eligible child under age 17. For the 2021 tax year the American Rescue Plan increased the credit to $3,000 for each child under age 18 and to $3,600 for children under age 6 at the end of the year.

Even though the benefit of a tax credit traditionally isn’t available until after the tax return for the year has been filed, for 2021 the new tax law included a provision to get the credit benefit into the hands of taxpayers as quickly as possible and charged the Secretary of the Treasury with establishing an advance payment plan. Under this mandate, those qualifying for the credit would receive monthly payments starting in July equal to 1⁄12 of the amount the IRS estimated the taxpayer would be entitled to by using the information on the 2020 return. If the 2020 return had not been filed or processed yet by the IRS, the 2019 information was to be used.

Continue reading →
Posted in Tax Central | Tagged Advance Child Tax Credit
© 2022 Lake Wylie Tax Service . - All rights reserved
Web Design and Hosting by Pro Impact, LLC
↑
Translate »