Have you recently received a check from the IRS referring to your child tax credit and wondered why or what that means for your 2021 taxes? If so, I’m here to help!
In March 2021, the American Rescue Plan was put into place and it included enhanced child tax credits. This plan, unlike the stimulus payments you received, is a monthly advance payment. Therefore, the installments they are sending out are simply an advance on the tax credit you would take on your 2021 tax return, reducing the amount of credit you can take when you actually file your taxes.
Watch this week’s video to dive further into the 2021 child tax credit changes.
For more information, check out the IRS Child Tax Portal.
This is where you will be able to:
- Check to see if you are enrolled to receive advance payments
- View the status of your payment if you have not yet received one
- If you do not want to receive advances, you can use the portal to unenroll
- Update your mailing address and/or dependent information
Don’t Wait, Plan Ahead!
If you’re already planning for your 2021 taxes, great! If not, I’m here to help!
Contact me and let’s get started on a tax plan so you know what you expect when you file your taxes instead of being surprised with all of these recent changes.
Are you looking to get your bookkeeping system in order? Or maybe want a better understanding of the terminology?
Enroll in my free bookkeeping course!
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