Child Tax Credit for 2021 – What You Need to Know

Many families have been struggling to make ends meet since the start of the COVID-19 pandemic. Families with minor children have been especially inconvenienced by the economic impact of the pandemic. This led Congress to pass a $1.9 trillion relief package, part of which is geared towards helping struggling families. One way this relief package is assisting families is having the Internal Revenue Service (IRS) deliver monthly installments of the child tax credit in 2021 rather than waiting to receive a lump some payment on their 2022 tax returns.

In this article, we are going to discuss the newly expanded Child Tax Credit and what you need to know. If, after reading this article, you would like further information about this tax credit and if you qualify, we invite you to call a tax attorney Sarasota, Florida at the Law Office of Mary E. King, P.L.

The Law Office of Mary E. King, P.L. can make sure that all your IRS resolutions are evaluated and discussed efficiently and at the lowest cost to you.  Please fill out our online contact form , or call us at 941-906-7585 today.

The relief package was passed in March and payments are scheduled to be delivered by mail or direct deposit beginning July 15, 2021.  The method that the payment is received is the method the IRS has on file from 2019 and 2020 returns.  About 39 million filing households will receive their payments automatically, covering about 90% of children in the United States.  Payments are expected to be made on the 15 th of each month.

Some households who are not required to file taxes due to low-income and those who have not filed tax returns for 2019 and 2021 for other reasons must sign up to receive the Child Tax Credit benefit. The IRS has a sign-up tool for non-filers. Some concerns have been raised about the sign-up tool being difficult for those who aren’t tech-savvy, have identity verification obstacles, and those with language barriers.  A Sarasota tax attorney or tax professional will be able to assist you if you have questions about this web tool or other requirements and details of the Child Tax Credit payments.

The Child Tax Credit expansion increased from $2,000 tax credit per child up to the age of 17 years of age to $3,000 for children ages 6 through 17 and $3,600 for children under 6. Single earners who made less than $75,000, Head-Of-Household filers making less than $112,000, and married couples filing jointly earning less than $150,000 per tax year will receive up to $250 per month per child ages 6 through 17 and up to $300 for each child under 6. Households making more may receive a reduced amount or nothing at all.

Some households will prefer a lump sum when they file their tax returns in 2022 to avoid reduced refunds or owed balances if there has been a change in income. The deadline to opt for the July 2021 payment has passed, but households who would prefer a lump sum can unenroll for monthly payments if they do so by August 2.

For those who opt-out of monthly payments, you will receive the full Child Tax Credit in full next year when you file your tax return (minus the July payment). Additionally, no other benefits you receive (SSI, SNAP, WIC, etc.) will affect the amount of the tax credit owed to you.

We invite you to reach out to the Law Offices of Mary E. King.  Tax matters can be complicated, and thus, it is always helpful to have someone in your corner who understands the tax law and deals with the IRS on a regular basis.  There are multiple issues you may have concerning the IRS, and having a seasoned tax attorney can help. 

So, when it comes to dealing with tax relief and tax litigation, you need to talk to tax attorneys in Florida who can help.  Mary E. King has spent her career concentrating on tax law and can help you with tax scams in Florida and elsewhere.  Attorney Mary E. King has a wealth of information about what types of options would make the most sense for you and your business.

That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax-related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, a tax attorney in Florida, is the first step you should take towards relief.

The Law Office of Mary King P.L. offers complete IRS problem-solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses.  Call us today to schedule an initial consultation.  With years of experience as a Sarasota tax attorney for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor.  Fill out our online contact form , or call us at 941-906-7585.   Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.

The information in this blog post is provided for informational purposes only and is not intended to be legal advice. You should not make a decision whether or not to contact an attorney based upon the information in this blog post. No attorney-client relationship is formed nor should any such relationship be implied. If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.