Tax credits

AICPA Addresses Taxpayers’ Top Questions About the Child Tax Credit

Retrieved on: 
Thursday, July 22, 2021

Among the many changes to the child tax credit, AICPA recommends that taxpayers be aware of the following:

Key Points: 
  • Among the many changes to the child tax credit, AICPA recommends that taxpayers be aware of the following:
    The age of qualifying children was raised from 16 to 17.
  • The tax credit amount has increased for certain taxpayers.
  • Taxpayers should also understand that these changes are temporary and only apply to the 2021 tax year, and the decision to have the child tax credit payments received in advance will affect a taxpayers refund or amount due when that return is filed.
  • Taxpayers can update their information to reflect any new information that might impact their child tax credit amount, such as filing status or number of children, using the IRSs child tax credit and update portal .

Anticipating a Major Opportunity to Advance Financial Security, Commonwealth Scales Tax Credit Access Initiative For Low- and Moderate-Income Families of Color

Retrieved on: 
Wednesday, July 14, 2021

The fundamental changes to the tax code included in the American Rescue Plan Act of 2021 (ARPA) present a monumental opportunity to advance the financial security of financially vulnerable American families.

Key Points: 
  • The fundamental changes to the tax code included in the American Rescue Plan Act of 2021 (ARPA) present a monumental opportunity to advance the financial security of financially vulnerable American families.
  • On July 15, 2021, the IRS will begin monthly payments of the advance child tax credit, continuing through December 2021.
  • Commonwealths first rapid reaction campaign with partners Neighborhood Trust Financial Partners and SaverLife clearly communicated the changes in the tax credits to the most vulnerable families.
  • Commonwealth is a national nonprofit building financial security and opportunity for financially vulnerable people through innovation and partnerships to change systems.

New state budget increases allocation to PHFA Mixed-Use Development Tax Credit Program from $3 million to $4.5 million

Retrieved on: 
Thursday, July 1, 2021

HARRISBURG, Pa., July 1, 2021 /PRNewswire/ --The Pennsylvania Housing Finance Agency is pleased to announce that the newly signed state budget increases the allocation of tax credits for its Mixed-Use Development Tax Credit Program by $1.5 million to now total $4.5 million.

Key Points: 
  • HARRISBURG, Pa., July 1, 2021 /PRNewswire/ --The Pennsylvania Housing Finance Agency is pleased to announce that the newly signed state budget increases the allocation of tax credits for its Mixed-Use Development Tax Credit Program by $1.5 million to now total $4.5 million.
  • These tax credits will be used by the winning bidders which can be companies, organizations or individuals to reduce their state tax liability.
  • This state tax credit program was created as part of the commonwealth's fiscal year 2016/2017 budget (implemented July 1, 2017), and PHFA was directed to administer the credits.
  • More information about the mixed-use development tax credit and the current bidding process is available on the PHFA website (scroll down).

Families can easily estimate their advance child tax credit payments with H&R Block’s online calculator

Retrieved on: 
Tuesday, June 29, 2021

Now people can better understand how much money they might receive and the impact of the changes to their tax return next year, with the help of H&R Blocks new online calculator.

Key Points: 
  • Now people can better understand how much money they might receive and the impact of the changes to their tax return next year, with the help of H&R Blocks new online calculator.
  • The H&R Block child tax credit calculator at hrblock.com/CTC will help families estimate what to expect simply by inputting their filing status, 2020 income, and the number and ages of their children.
  • The calculator reflects the amount families can expect in monthly payments, July to December, and an estimate of the credit amount they may receive when they file their taxes next year.
  • There are also answers to common questions such as where the advance payments will be deposited, how to update information with the IRS, and the online child tax credit calculator .

Affirming Youth Foundation Celebrates Child Tax Credit Awareness Day

Retrieved on: 
Monday, June 21, 2021

MIAMI, June 21, 2021 /PRNewswire/ --Today we celebrate Child Tax Credit Awareness Day, the largest Child Tax Credit and historic relief to the most hard-working families ever.

Key Points: 
  • MIAMI, June 21, 2021 /PRNewswire/ --Today we celebrate Child Tax Credit Awareness Day, the largest Child Tax Credit and historic relief to the most hard-working families ever.
  • "The Child Tax Credit provides families the access, resources, and tools they need to support their families financially," said Jonathan Spikes, Affirming YOUth Foundation, Inc.'s Founder and Executive Director.
  • Affirming Youth Foundation, Inc. currently works with community-based organizations across Liberty City to deliver education and outreach activities on the Earned Income Tax Credit (EITC).
  • The Child Tax Credit, which benefits people with low to moderate income, has been known to improve the health and economic outcomes of families.

50-State Data Report Confirms Urgent Need To Make Game-Changing Expanded Child Tax Credit Permanent

Retrieved on: 
Monday, June 21, 2021

BALTIMORE, June 21, 2021 /PRNewswire/ --Today, as the federal government launched a new website and other resources for parents and caregivers eligible for an expanded child tax credit, the Annie E. Casey Foundation released a 50-state data report that argues for making the expansion permanent.

Key Points: 
  • BALTIMORE, June 21, 2021 /PRNewswire/ --Today, as the federal government launched a new website and other resources for parents and caregivers eligible for an expanded child tax credit, the Annie E. Casey Foundation released a 50-state data report that argues for making the expansion permanent.
  • Since then, the federal child tax credit has been increased as well as restructured to provide advance monthly payments to most families of $250 to $300 per child.
  • "Making the expanded child tax credit permanent will continue providing critical financial support for families who are struggling to make ends meet and help reduce long-standing disparities that affect millions of families of color."
  • Massachusetts, New Hampshire and Minnesota placed first, second and third in the annual KIDS COUNT rankings, which are based on pre-pandemic data.

Common Sense Launches "Campaign for America's Children" to raise awareness about new child tax credit and other benefits for kids and families in President Biden's American Rescue Plan

Retrieved on: 
Monday, June 21, 2021

Individuals who filed their 2019 or 2020 tax returns will start receiving direct monthly child tax credit payments from the IRS on or about July 15.

Key Points: 
  • Individuals who filed their 2019 or 2020 tax returns will start receiving direct monthly child tax credit payments from the IRS on or about July 15.
  • Common Sense will use a combination of paid media, digital campaigns, and direct outreach to encourage eligible families to learn about the American Rescue Plan benefits by visiting the campaign's website ( www.campaignforamericaschildren.
  • com ), where they can access the IRS's newly created child tax credit portal and apply for advance child tax credit payments.
  • Common Sense was instrumental in securing American Rescue Plan bill funding to support broadband at home for K12 students, and also was a strong voice on the historic increase in the child tax credit.

Engineered Tax Services Allies with WOTC.com to Promote Tax Credits for Hiring the Disadvantaged

Retrieved on: 
Wednesday, May 19, 2021

The WOTC Tax Credit is a dollar-for-dollar tax credit (not a percentage) of IRS taxes owed.\n"We\'ve found an ideal partner in WOTC.com," said Julio Gonzalez, CEO of Engineered Tax Services.

Key Points: 
  • The WOTC Tax Credit is a dollar-for-dollar tax credit (not a percentage) of IRS taxes owed.\n"We\'ve found an ideal partner in WOTC.com," said Julio Gonzalez, CEO of Engineered Tax Services.
  • "Work Opportunity Tax Credits are a wonderful way to help the disadvantaged in our society and encourage the employers who hire them.
  • "\nShe added: "Every year, employers claim over one billion dollars in tax credits under the WOTC program!
  • "\nEngineered Tax Services, Inc. (ETS) is the only licensed engineering firm providing specialty tax services to CPA firms and their clients.

AARP Endorses Bill to Provide Up to $5,000 Tax Credit for Family Caregivers

Retrieved on: 
Tuesday, May 18, 2021

b'WASHINGTON, May 18, 2021 /PRNewswire/ -- AARP has endorsed the Credit for Caring Act, bipartisan legislation that would provide up to a $5,000 nonrefundable federal tax credit for eligible working family caregivers.

Key Points: 
  • b'WASHINGTON, May 18, 2021 /PRNewswire/ -- AARP has endorsed the Credit for Caring Act, bipartisan legislation that would provide up to a $5,000 nonrefundable federal tax credit for eligible working family caregivers.
  • These family caregivers provide wide-ranging support, and the financial toll they face can be substantial.
  • The Credit for Caring Act could alleviate some of this financial stress by providing a tax credit to help offset out-of-pocket costs for family caregivers.\n"AARP is proud to endorse the bipartisan Credit for Caring Act.
  • By providing a tax credit to eligible family caregivers, Congress can offer some much-needed financial relief to these hard-working Americans.

MEDIA ALERT: A new bundle of joy also comes with a bundle of tax benefits

Retrieved on: 
Thursday, May 13, 2021

b'Wolters Kluwer Tax & Accounting:\nWhat: Welcoming a new child into a family can be very fulfilling and rewarding, but also comes with many expenses that new parents face.

Key Points: 
  • b'Wolters Kluwer Tax & Accounting:\nWhat: Welcoming a new child into a family can be very fulfilling and rewarding, but also comes with many expenses that new parents face.
  • Several Tax Code provisions are designed to make finances a little easier for new parents, including some new enhancements from the recently enacted American Rescue Plan Act.\nChild Tax Credit.
  • A refundable credit up to between $1,502 and $6,728 for 2021, depending on the number of children, income level, and tax filing status\nAdoption Credit.
  • You need to meet residency and support tests, an issue especially important for divorced or separated parents\nThe Nanny Tax.