For tax year 2021, the Child Tax Credit increased from $2,000 per eligible child to $3,600 per child ages five and younger and $3000 for children ages six to 17. The amount of Advanced Child Tax Credits is half of the new credit amounts. So, starting July 2021, if you are eligible, you will start to receive monthly Advanced Child Tax Credit payments. If your child is five years old or younger, the payment would be $300 per month through December. That is $1,800, or half of the new Child Tax Credit amount. If you have children between the ages of six and 17, your monthly payment will be $250 per month through December, or $1,500 total.
The Planner is CORE Group's blog and a way to help others interested in up to date tax service news.
Tax deductions are great, but tax credits are even better! So what's the difference? Glad you asked!
Lots of the old tax rules have changed in the last few years. If you haven't reviewed and adapted, you are likely paying your rich Uncle Sam too much. The Tax Cut and Jobs Act (TCJA) combined the amounts for standard deductions and exemptions into one number. The Act also eliminated deductions entirely. This effectively removed itemized deductions for many tax payers since the standard deduction/exemption for 2020 is $24,800 (married filing jointly).
We will not mince words here: getting divorced can be a long, drawn-out, and complicated process — both personally and professionally. But since we are not therapists, we will be focusing on how to handle your taxes when both parties have a stake in a small business. Keep reading for advice on future tax implications, retirement accounts, and more from our experts at Core Group.
Due to the pandemic, it’s likely that you or someone you know works remotely, at least temporarily. Here are a few factors to keep in mind when filing your taxes, potential problems that may arise, and relief opportunities that may be available to you. When in doubt, our experts at Core Group can help you devise the tax strategy that’s right for you.
Meet Penelope, a fictional, full-time freelancer who offices from her small (but cozy!) home. Since her home office takes up about 25% of her home, she’s been deducting 25% of her maintenance costs as business expenditures for the past five years. But now she’s ready to sell her home. What tax implications can she expect to face? Does the IRS now classify 25% of her profit as business income? Here’s what to expect when selling a home with a home office.
As a child, you fear the monster in your closet. There are dark shadows peeking out of the cracked door. As soon as you turn on the light you see what you thought was a big one eyed monster was actually just your winter coat. The fear of the unknown does not disappear when you become an adult. Now you fear your finances and tax season, which without guidance, can be just as dark and scary.
Everyone says you have to see the Grand Canyon before you die. It is a life changing experience and photos do not do it justice. You hire a travel agent to book the trip for you and your spouse. Would you trust the travel agent to write your itinerary without ever meeting with you? The next thing you know you have tickets to take a helicopter tour around the Grand Canyon which is perfect except for your spouse’s fear of helicopters. It is important that you are a part of the planning process because you could have quickly informed the agent that it might be better to see the canyon from the observation deck instead.
Strategy, according to Mr. Webster, is “a careful plan or method”. In business, a strategy is generally how you achieve your goals. So you may have a marketing strategy to obtain new customers, or a hiring strategy to source new employees. Strategy, no matter what words you use to define it, is forward thinking. Sadly, many business owners never think of their business strategically, but remain reactive. If you fall in the reactive category, I suggest you stop reading this and pick up a copy of The E-Myth by Michael Gerber.