All About The Child Tax Credit
Today may be your lucky day!
If you have dependents 18 and under, you may want to check your bank account. Those who meet certain income requirements will be pleasantly surprised with a government deposit.
Due to the expansion of the Child Tax Credit Congress passed in March, the IRS made the first of six monthly payments to more than 35 million families accounting for nearly 60 million children. Families eligible for the federal Child Tax Credit will begin receiving monthly payments instead of waiting to receive an annual credit when they file their 2021 tax returns.
A tax credit is different than a tax deduction in that it is a dollar for dollar reduction in taxes.
We created a video to provide detailed information about how the payments will work.
Please take a look on the LAA YouTube page --> ALL ABOUT THE CHILD TAX CREDIT
Other helpful resources, items of interest, & links:
If you didn't file a return in 2019 or 2020 and you think you should be eligible but didn't receive a payment, the IRS has an eligibility tool for you to see if you qualify for payments. Here is the link for the IRS Child Tax Credit Eligibility Assistant.
This Wall Street Journal article delves into details that may cause one to consider opting out of the payments.
Suzanne's podcast: The Black Swans Podcast Episode on Tax Proposals and Estate Planning provides some context for the child tax credit.