June 2021: Advance Child Tax Credit
Advance Child Tax Credit:
What You Need to Know
Beginning July 2021, you and your family may be eligible for advance payments on the Child Tax Credit (CTC). The American Rescue Plan Act (ARPA) of 2021 has changed how the CTC is being utilized for the 2021 tax year, in an effort to provide families with more support throughout the year. This change will cover 88% of children in the United States.
- Monthly, starting July 2021 (next month!) and ending December 2021
- Payments are set for the 15’th of each month
- Per the IRS, the payment can be up to $300 per month for each child under 6, and up to $250 per month for each child 6 and older
- NOTE: although these payments are not taxable, please keep a record of each payment received, and please provide this information to us with your 2021 tax information at the end of the year. We will use this information to reconcile your CTC.
- If you are a married taxpayer and your income is below $150,000, you are eligible to receive the full advance CTC
- If you are an unmarried taxpayer and your income is below $112,500, you are eligible to receive the full advance CTC
- If your income is between the amounts below, the advance payments are subject to reduction:
- $150,000 – $440,000 for married filing joint (MFJ) taxpayers
- MFJ with income at or above $440,000 – not eligible for the CTC
- $112,500 – $240,000 for unmarried taxpayers
- Unmarried taxpayers with income at or above $240,000 – not eligible for the CTC
- Other than filling your 2020 tax return, no further action is needed from you to receive advance CTC payments
- If you have not yet filed your 2020 tax return, the IRS will use your 2019 tax information to determine your eligibility
Forrest, a California native, joined Soukup, Bush & Associates as an intern for the 2013 and 2014 tax seasons before formally joining the firm as an associate in May of 2015 following his graduation. Forrest received his B.S. in Business Administration, Accounting, along with his Master of Accountancy from Colorado State University. He is responsible for the preparation of individual and business tax returns, along with overseeing IT operations for the firm.
In his spare time, Forrest enjoys exploring Colorado, reading, playing card games, and spending time with his wife, Stephanie, and their two mini Dachshunds, Oliver and Otis.
SEPTEMBER 15, 2021 – Federal and state income tax returns are due for flow-through entities, including partnerships and S-Corporations if extended
SEPTEMBER 30, 2021 – Federal and state income tax returns are due for trusts if extended
OCTOBER 15, 2021 – Federal and state income tax returns are due for individual taxpayers and C-Corporations if extended
2021 Estimated Payment Deadlines
JUNE 15, 2021 – 2nd quarter estimated payments for 2021 are due to the IRS and Colorado Department of Revenue
SEPTEMBER 15, 2021 – 3rd quarter estimated payments for 2021 are due to the IRS and Colorado Department of Revenue