New online tools to help families manage Child Tax Credit payments

The American Rescue plan increased the maximum Child Tax Credit amount in 2021 to $3,600 per child for children under the age of 6 and to $3,000 per child for children ages 6 through 17. It’s also now an advanceable payment, and automatic payments for eligible families will start on July 15, 2021.
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To help families sign up for this advanceable credit, the IRS launched several new online tools designed to help families manage and monitor these payments:
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• Child Tax Credit Eligibility Assistant – allows families to answer a series of questions to quickly determine whether they qualify for the advance credit.

 

• Child Tax Credit Update Portal – allows families to verify their eligibility for the payments and if they choose to unenroll, or opt out, from receiving the monthly payments so they can receive a lump-sum when they file their tax return next year.

 

• Non-filer Sign-up Tool – helps families not normally required to file an income tax return to quickly register for the Child Tax Credit and Economic Impact Payments.

 
 
Tax credits for paid leave under the American Rescue Plan Act of 2021

• The IRS posted new frequently-asked-questions (FAQs) to help small- and mid-sized employers in claiming credits under the American Rescue Plan (ARP) with respect to leave taken by employees beginning on April 1, 2021, through September 30, 2021. The FAQs cover the equivalent credits available for certain self-employed individuals.

 

• The FAQs include information on how eligible employers may claim the paid sick and family leave credits, including how to file for and compute the applicable credit amounts, and how to receive advance payments for and refunds of the credits.

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"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
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Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720