As with any business investment or expense, you want to make sure you’re getting what you’re paying for. The same rings true with an accountant or CPA.
The Planner is CORE Group's blog and a way to help others interested current tax planning and service news.
Every American citizen is required to pay tax on all income they earn. This rule isn’t limited to your monthly paycheck. It also doesn’t matter whether you received your income in cash, check, goods, or services. As long as your earnings qualify as taxable, then you have to pay your dues in the year you receive your income.
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.
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.