How This New Child Tax Credit Amendment Could Affect Your Finances
Filing taxes on time is essential to stay on the right side of the Internal Revenue Service (IRS). But, every now and then, amendments to the tax code can favorably or adversely affect your financial position depending on your unique situation. Therefore, it’s essential to work with a professional that stays on top of the latest tax laws and can help you move forward.
At Bruce T. Hall, CPA, we want to arm you with the most accurate information available to help you make an informed decision when filing your taxes. To do this, we’ve outlined how the latest child tax credit amendment affects your finances.
The IRS has started issuing advance payments for child tax credit. They will pay half of the total credit amount in advance each month from July through to December 2021. The other half can be claimed on the 2021 tax return.
If you qualify for these payments, the IRS has mailed a letter out to you and has set up a portal to manage the rebates. However, you have the option not to receive these payments in advance and take the total amount on your 2021 tax return.
We recommend that if you like to receive large refunds, claim a child every other year, or usually owe taxes, you may want to consider opting out of these advance payments.
If you have any questions about child tax credit refunds or any other tax matters, please reach out to the trusted professionals at Bruce T. Hall, CPA. As a top accounting firm in Pittsburgh, Pennsylvania, we are dedicated to rendering guidance in various financial issues by offering personalized services. Our services include accounting, taxation, bookkeeping, and payroll. We also provide business consultancy to our clients. We serve clients across Pittsburgh, Monroeville, Oakmont, New Kensington, Homestead, and Murrysville, Pennsylvania.