GDA Newsflash: Advance Child Tax Credit
The Bottom Line:
American Rescue Plan & 2021
Advance Child Tax Credit important links!
UN-ENROLLMENT needs to be done asap
2021 Taxes & The American Rescue Plan
There are a few main ways in which the American Rescue Plan will affect families:
1. A temporary expansion to the child tax credit - the amount is increased, age limits are slightly relaxed, it will be refundable for more taxpayers, and - here's the big one - half of the estimated 2021 tax credit will be *ADVANCED* monthly to families: great video re who will be eligiblehere!
2. More families will qualify for child/ dependent care credit, employers can offer workers a higher maximum tax-free amount in a Flexible Spending Account (FSA) if they choose to, and more individuals without children will qualify for EITC, especially those with lower income.
3. More Earned Income Tax Credit eligibility - more working families who have investment income and more married-but-separated spouses will be eligible.
Check back as info updates but in short - this is Good News, relaxing many restrictions for families when many are just starting to get back on our feet.
Important Links for ACTC 2021
1. Advance Child Tax Credit Payments in 2021 general explanation.
2. ACTC Eligibility Assistant: Check your eligibility using your 2019/ 2020 return, or estimate using your income and number of children.
3. View advance payments, or UN-ENROLL here: If you are choosing to opt-out, this needs to happen asap
4. Sign-up tool if you are a "non-filer" (not require to file taxes)
More features are coming soon, so please check the GDA Resources page frequently.
Although the IRS is still very behind regarding 2020 taxes - they have created these tools to help struggling families. Find out if you and your child/ren are eligible, know what to expect, check back frequently for updates, and you're sure to have a Good Day.