What You Need To Know About Advanced Child Tax Credit Payments

What You Need To Know About Advanced Child Tax Credit Payments

Advanced Child Tax Credit Payments in 2021

Among the many changes that have happened within the IRS, the one change that is grabbing attention is the Advance Child Tax Credit Payment. This means that if you have eligible dependents you will receive advanced monthly payments of the increased Child Tax Credit that you would normally see on your year end tax return. This can result in some tax planning issues if you are not careful.

This is not another stimulus payment. This is the IRS sending you your refund earlier than normal. If you normally have a balance due after the child tax credit, this can result in a larger liability at year end if you do not prepare accordingly.

To opt out of the Advance Child Tax Credit Payment you can do so at https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

Just click on the “Unenroll from Advance Payments.”

Be sure to talk with your tax advisor about how this affects your personal situation.

Where Is My Tax Refund?

Where Is My Tax Refund?

The IRS is swamped. As it struggles to manage processing issues due to the pandemic and last-minute changes from the latest tax credits approved by the Biden administration, there’s one painful consequence for many Americans: a potential delay in receiving their tax refund.

In 2020, the IRS closed its offices due to the pandemic. This created a backlog of unprocessed paper 2019 tax returns the IRS is still catching up on—and that’s not even counting the high-volume of 2020 tax returns being submitted.

The IRS says that several services are affected by these issues, including a slowdown of reviewing newly filed tax returns—even if they’re filed electronically. This in turn can delay the issuing of refunds.

Delays in receiving your tax refund can be frustrating but you can go online to the IRS website and check the status of your refund by going to: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp