Then I will attempt to catch you up on what is happening in the world of business, taxes, budgeting, starting a business, and generally what you need to know to save money and plan for your future. I want you to pay the legal amount of taxes, and no more, and do so within the law.
I have posted on Facebook since this summer that the advance credit for children and dependents is not free money. It is an ADVANCE upon the tax credit you receive when you file your personal tax return. Some individuals or couples will not see the advance as they have income outside the limit, based on the previous year’s tax filing, but will still be able to get it when they file their 2021 Form 040.
If you have received the advance remember you must report the total amount received as it will reduce any credit you would get in your refund. If you are loving huge refunds when you file your tax return, this will not happen. For 2021 Qualifying Dependent credit is $3,600 up from $2,000. Taxpayers will generally see $300 per dependent each month from July through December.
There are taxpayers who use credits to assist with their tax bills and receiving the advance may hurt them come tax time. A couple who have received the first few payments but want to stop must each OPT-OUT on the IRS website. If only one opts out the money will still be sent. This is where tax planning and knowing what the credit does o there are no surprises.
The breakdown for the Child and Dependent credit for 2021 is:
Qualifying child under 17 is $3,000
Qualifying child under 6 is $3,600
If you want to stop before the next round of payments you have until October 4th for the payment date of October 15th. November 1st for the payment date of November 15th. And finally November 29th for the payment of December 15th. In any case, keep a record of your advances either via check or direct deposit you received.