The first payment on the Child Tax Credit began hitting bank accounts yesterday. Rather than being a non-refundable credit for those making a certain income, it is now fully refundable and worth up to $3,000 for children between ages six and seventeen, and $3,600 for children below that age.
Prior to the current administration’s legislation last March, it was only available to taxpayers earning more than $2,000, but is now available to anyone. Monthly payments will be made around the 15th of the month beginning in July going through December. The rest of the credit will be claimed when families file their taxes next year.
If you would like to opt out of the monthly payments and receive the credit as a bulk sum during tax season, please go to the following web address.
Eligibility for the credit is based on income. Those with incomes above these limits will either have their payments limited or not receive the credit at all.
MFJ / Widow/Widower $0 – $150,000
HOH $0 – $112,500
Single $0 – $75,000
If these income requirements are met, supposedly the IRS will automatically enroll you for advance payments. Of course, no one is telling us what to do if you are eligible and don’t receive your payments. If anyone figures that out, please let us know.
Also, please realize that just like the other stimulus payments. If they send you the money and you end up earning too much this year to qualify for the payment, you will be forced to pay it back. If you think that this will occur, it might be smarter to opt out.
Let me leave you with this.
I’m continuing to hear disturbing news about the Delta variant. My wife and I were talking about it this morning, and a new concept began to hit me like a brick.
What if they shut everything down again?
Is it even possible? Are they even considering such a drastic step? Well, Chicago just put two states back on it’s travel advisory.
Let’s remember what happened last year. Things began opening up last summer, and they shut everything back down in the fall when everyone usually gets the flu. Is it even possible?
If positivity rates and hospitalizations continue to climb, the politicians wouldn’t have a choice. Think about it. If they told everyone that they were “forced” to shut everything down last year, and they were faced with the same possibilities, they couldn’t not close everything again.
I’m raising this possibility to ask you to think it through. If this were to happen again, what would you do? After getting through the first two, you would probably just use the same contingency plan as before.
I’m just suggesting that you think about it so it doesn’t catch you completely by surprise. Especially since one of the states added to the no travel list was our neighbor Missouri. Positivity rates in that corner of our state are supposedly increasing rather rapidly.
I’m also suggesting a renewed effore to get everyone vaccinated before this thing gets stupid again.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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