Dependents Feed

Last year, as companies and employees were struggling with operational changes necessary to safely deal with the COVID-19 pandemic, the Internal Revenue Service IRS provided relief that allowed employers to tweak benefits plans so that employees had increased flexibility to make mid-year changes to dependent care spending accounts. This change helped parents who had set aside tax-deferred money in child care accounts, but because their kids were at home while mom and/or dad also worked at home, did not need as much care account funds as they anticipated pre-pandemic. Today, the IRS has issued additional guidance on the latest coronavirus... Read more →


Photo via Pexels There have been some stumbles with the delivery of Advance Child Tax Credit (AdvCTC) payments this summer, the most recent happening last month when some were delayed. That's understandable. The AdvCTC distribution is yet another new job for the Internal Revenue Service, which already is struggling to handle its regular jobs during a persistent pandemic. Still, it's frustrating for folks depending on the money, which has been increased for the 2021 tax year to $3,600 for each child younger than age 6, and $3,000 for each youngster ages 6 to 17. Many missing the money: Half of... Read more →


But despite the technical problem, IRS says still use online tool to make changes, including stopping Advance Child Tax Credit payments for the rest of the year. You'd think that by the time the Internal Revenue Service issued the third Advance Child Tax Credit (AdvCTC) payment, things would be automatic. Well, you've got another think coming. The IRS did deliver in mid-September around 35 million AdvCTC payments totaling $15 billion. But unfortunately for some eligible families, their money didn't show up on time. The explanation was the usual one. It was a technical issue. Yeah, I rolled my eyes, too.... Read more →


Advance Child Tax Credit (AdvCTC) payments are producing a financial benefit to more than the families receiving the money. The early tax credit amounts, which started going out in July and will continue through December, also appear to keep more workers on the job. That's a finding from a report by Humanity Forward, which partnered with researchers at the Washington University of St. Louis, Appalachian State, University of North Carolina-Greensboro, and the Urban Institute to examine the potential effects of the tax break. In addition, the tax credit also is encouraging some to follow through on entrepreneurial plans. Popular tax... Read more →


Are you missing out on monthly Advance Child Tax Credit (AdvCTC) payments? Sign up today to get in the system and start getting checks starting next month. The Internal Revenue Service will keep sending out the amounts to eligible taxpayers for the next four months. The payments are up to $300 per month for each qualifying child younger than age 6 and up to $250 per month for each child age 6 through 17. They are either directly deposited if you have a financial account or a paper U.S. Treasury check is mailed around the 15th of each month. And... Read more →


The parents of these youngsters are as happy as their offspring, thanks to the Advance Child Tax Credit payments. But some moms and dads still have questions about the money. With the delivery of the second Advance Child Tax Credit (AdvCTC) payments last week, the Internal Revenue Service now has sent out roughly $30 billion to around 36 million families. That dollar amount will continue to grow as half of the tax credit, which was bumped up for the 2021 tax year, is mailed or directly deposited at the middle of the coming months. But this weekend, as we mark... Read more →


Photo by Juan Pablo Serrano Arenas from Pexels On Friday, the second of this year's Advance Child Tax Credit payments were directly deposited to accounts of families who signed up to get the tax relief measure that way. Those awaiting an actual paper Treasury Department check should see them arrive in their snail mail boxes in a few days. In most cases, the money, which is a prepayment of the Child Tax Credit (CTC) is welcome. But in some instances, the early money could cause payback problems for families whose tax situations changed this year. Child Tax Credit benefits and... Read more →


You got your first Advance Child Tax Credit (AdvCTC) this month. The added $300 for each of your kiddos age 5 or younger or $250 per child if your youngsters are age 6 through 17 is nice. But your 2021 financial situation has changed, and you've done the math. The calculations show that this COVID-19 relief money, authorized by the American Rescue Plan Act and which the Internal Revenue Service is sending based on your 2020 tax year filing data, no longer applies. In fact, since you're making a bit more money this year, if you keep getting the AdvCTC... Read more →


Everybody needs some help now and then. On Friday, July 23, and Saturday, July 24, the Internal Revenue Service is providing assistance to those in 16 metropolitan areas who need to file a 2020 tax return so they can get various COVID-19 relief payments. The first of six scheduled Advance Child Tax Credit (AdvCTC) payments hit bank accounts and U.S. Postal Service boxes last week. The bulk of these initial payments — the Internal Revenue Service says it sent out $15 billion to about 35 million families — were dispersed automatically. The recipients, who had previously filed returns or used... Read more →


Millions of parents are as happy as these youngsters, thanks to the first Advance Child Tax Credit payment that arrived this month. Others, however, are wondering why they got less. The first of six scheduled Advance Child Tax Credit payments have arrived, and for the most part, the recipients are elated. Paul Williams, an economist and writer, has collected many of the happy recorded (or recreated) reactions in an entertaining Twitter thread. Some folks, however, aren't so thrilled. In fact, they're wondering why they didn't get the full $300 per month for each dependent child younger than age 6 and... Read more →


Don't fall for scammers who falsely say they can help you get, or get more, of the enhanced Child Tax Credit amounts that started going out this week. Instead, get help from a tax pro or use the Internal Revenue Service's online tools. The Advance Child Tax Credit (AdvCTC) payments started showing up in bank accounts today. Folks who'll get the enhanced early credit amounts by snail mail should see those U.S. Treasury checks soon. The Internal Revenue Service says it delivered today the first batch of the early Child Tax Credit payments, worth roughly $15 billion, to around 35... Read more →


These youngsters' parents will join them in jumping for joy if the expanded Child Tax Credit, which was expanded for the 2021 tax years, is extended or, as some in Congress want, made permanent. On the eve of the expanded Child Tax Credit going out to millions of families, a group of Democratic members of Congress want the enhanced tax break to become a permanent part of the Internal Revenue Code. Under the American Rescue Plan Act (ARPA), the COVID relief measure that became law in March, the Child Tax Credit (CTC) was increased, for qualifying families, to $3,000 for... Read more →


Your youngster might not have enjoyed the Fourth of July fireworks (I'm right there with you, kiddo, when it come to the noise!), but your son or daughter could make you eligible for Advance Child Tax Credit payments starting this month. Hello, July! Yeah, I know my welcome to the first full month of summer is a bit late. But admit it. You don't really focus on the month either until after July 4th. Since it's the midpoint of the tax year, July usually is a great time to look into some tax saving tasks (more on this a bit... Read more →


Need help filing a 2020 tax return so you can get Advance Child Tax Credit payments? The IRS and community groups in 12 metro areas are holding events to help you do just that. In a few weeks, the Internal Revenue Service will start sending out advance payments of the Child Tax Credit. The early credit amounts will go out automatically to taxpayers who, based on their 2019 or 2020 tax filing data in the IRS system, qualify for the family-friendly tax break. But not everyone who's eligible for the Child Tax Credit, which generally will be $300 a month... Read more →


Advance payments this year of some of 2021's Child Tax Credit amounts can be a nice helping hand for some families. But the early distributions aren't for everyone. Those who want to wait to claim the tax break when they file in 2022 can go online to let the IRS know they'd rather wait. (Photo by Juan Pablo Serrano Arenas via Pexels) The Internal Revenue Service is finalizing distribution of advance payments for the last half of 2021 to families that qualify for the newly enhanced Child Tax Credit. The Advance Child Tax Credit (AdvCTC) payments of $250 or $300... Read more →


Almost 40 million U.S. families could get monthly Child Tax Credit payments this year. The extra money no doubt would be a big help, but some might discover they have to pay back the advanced amounts when they file their 2021 tax returns. (Photo by August de Richelieu via Pexels) You're fully vaccinated. Your company is open again, with everyone returning to the office. You got your kiddos, who also got jabbed, into a summer day camp. Hello, sort of normal summer! Even better, you're about to get some added monthly cash from Uncle Sam thanks to early Child Tax... Read more →


Being a parent is tough when there are two adults to share the responsibilities. Child rearing sometimes is darn nigh impossible when there's just a single parent in charge. Most single-parent families are headed by mothers. But there's a substantial number of dads facing these challenges, too. U.S. Census Bureau data show that of the 35 million fathers of minor children, 1.7 million, or roughly 2 percent, are single fathers living with at least one child younger than 18. On Father's Day 2021, we salute all you nearly 2 million dads who are doing your best to take care on... Read more →


Millions are awaiting Advance Child Tax Credit payments, which will start going out in July, but only to those for whom the IRS has info in its system. If you haven't had to file a return for a while, the agency has a new online tool you can use to register for the payments. Some folks don't have to send the Internal Revenue Service a Form 1040 every year. The reason, though, is not necessarily a welcome one. They don't have to file because they don't make enough money to require telling Uncle Sam about it. And since the COVID-19... Read more →


A letter from the Internal Revenue Service can be scary. But for 36 million families who soon will find such correspondence in their mail boxes, the news could be good. Very good. The document will have information on the Child Tax Credit (CTC), which was expanded under American Rescue Plan Act (ARPA) provisions that became law back in March. The $2,000 tax break was hiked for the 2021 tax year to $3,600 for each child age 5 and younger and to $3,000 each for those between ages 6 and 17. Even better, the entire credit is fully refundable for 2021.... Read more →


UPDATE, Oct. 5 , 2021: Yes, you are experiencing tax déjà vu. But if you're one of the millions of taxpayers who got an extension to file your 2020 return back in May, and then put off doing so until now, literally just days until the final Oct. 15 due date, then you need this reminder. As you finally fill out your Form 1040, don't make any of these dozen tax filing mistakes. Every tax-filing season is different. One thing is constant, though. Taxpayers, and sometimes even the tax preparers they hire, make mistakes on 1040 forms. Hey, we're only... Read more →


Since the American Rescue Plan Act (ARPA) was enacted on March 11, the Internal Revenue Service has distributed approximately 159 million COVID-19 economic impact payments (EIPs). Those deliveries come to more than $376 billion. This third round of coronavirus pandemic payments, worth up to $1,400 per person, has been going out in batches. Recipients include taxpayers who've filed 2020 returns, Social Security recipients, and veterans and their families. Still, there are some folks who aren't on the IRS' EIP delivery list. These are, for the most part, people who haven't file a tax return because they're not legally required to... Read more →