RefundtalkIRS clarified how individuals who are not otherwise required to file 2020 federal income tax returns can claim advance child tax credit (CTC) payments as well as stimulus payments (i.e., third-round economic impact payments, 2020 recovery rebate credit payments, and additional 2020 recovery rebate credit payments). To process these payments, the IRS needs certain information…
Category Archives: Tax Credits
Child Tax Credit: IRS to open portals on July 1; checks will begin July 15
The IRS will have two online child tax credit portals open by July 1. That’s where you’ll change your status and more. The child tax credit payments are coming — the good news is 88% of American families will qualify for at least some money. However, to make sure you get the right amount (and to make sure you’re not overpaid),…
What is the Additional Child Tax Credit?
Whether you have just one on the way or five and counting, kids are expensive. That’s why you should take advantage of tax cuts whenever possible. In addition to claiming them as dependents, you may also qualify for some other credits. One that could end up benefiting you substantially is the Additional Child Tax Credit.…
Recovery Rebate Credit
What is the Recovery Rebate Credit? You can claim your missing stimulus payment with the Recovery Rebate Credit. The IRS introduced the Recovery Rebate Credit for eligible taxpayers who did not receive the first or second stimulus payment. This credit was authorized for COVID-19 assistance under the CARES Act. It is an advanced payment that…
What is the Premium Tax Credit
Health insurance can be pricey. Luckily, you can get a refundable tax credit just for purchasing health insurance through the Marketplace. Keep reading to find out how you qualify. What is the Premium Tax Credit (PTC)? First, individuals and families with low to moderate-income homes can receive a refundable credit (meaning you can receive a…
Tax Refund Timing for Earned Income Tax Credit and Additional Child Tax Credit Filers
Taxpayers who claim the Earned Income Tax Credit or the Additional Child Tax Credit may experience a refund hold. According to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue these refunds before mid-February. The IRS expects the first EITC/ACTC-related refunds to be available in taxpayer bank accounts or on debit cards…
Who should file a Tax Return?
While many people are required to file a tax return, it’s a good idea for everyone to determine if they should file. Some people with low income are not required to file but will need to do so if they can get a tax refund. Here are five tips for taxpayers who are deciding whether…
Who Claims the Kids after Separation: You or Your Ex?
If you are a divorced or separated parent with children, a commonly encountered but often misunderstood issue is who claims the child or children for tax purposes. This is sometimes a hotly disputed issue between parents; however, tax law includes some very specific but complicated rules about who profits from the child-related tax benefits. At…
Important things to know about Tax Credits
With the tax filing season quickly approaching, the Internal Revenue Service recommends taxpayers take time now to determine if they are eligible for important tax credits. Earned Income Tax Credit The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for working people with low to moderate incomes who meet certain eligibility requirements. Because it’s…
Earned Income Credit – How Does It Work?
The earned income credit (EIC) is one of the most beneficial credits for individuals with children or those that are low income. Created in 1975 as an incentive for people to work, this credit potentially translates to huge tax savings. As with many other credits, you may not claim the earned income credit (EIC), also…
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