2021 – 03/11 Under the newly passed American Rescue Plan Act (ARPA), the Child Tax Credit (CTC) has expanded for 2021 for eligible taxpayers. Before the ARPA, the CTC was $2,000 per “qualifying child.” A qualifying child was defined as a child under age 17, whom the taxpayer could claim as a dependent. For 2021, the ARPA increases the CTC to $3,000 per year for each child age six to 17 and $3,600 for children under age six. To be eligible for the full payment, you must have a modified AGI of under $75,000 for singles, $112,500 for heads-of-households and $150,000 for joint filers and surviving spouses. The credit begins to phase out at higher incomes.
Similar Posts
Could your business benefit from a PEO?
2022 – 05/11 Keeping up with employment regulations and health care benefits can be a struggle for many small to midsize businesses. One potential solution is engaging a professional employer organization (PEO). PEOs employ experts who understand the minutiae of many HR functions. Moreover, these firms can handle difficult, recurring tasks such as managing employment…
ERC Safe Harbor
2021 – 08/11 The IRS has provided a safe harbor for employers claiming the Employee Retention Credit (ERC). The safe harbor allows employers to exclude certain amounts from their gross receipts when determining their eligibility for the ERC. Specifically, Rev. Proc. 2021-33 allows employers to exclude the following amounts from gross receipts: the amount of…
3 specialized IT leadership positions for growing businesses
2022 – 01/12 For many businesses, technology has changed from something they use to something they do. When a company reaches a point where IT plays a central role in operations and productivity, ownership might want to create one or more leadership positions to specifically oversee tech-related matters and strategy. Often, this means a Chief…
Like every business, a start-up needs a sensible budget
2022 – 11/16 An impressive 432,834 new business applications for tax identification numbers were submitted during October 2022, according to the U.S. Census Bureau. Indeed, despite the relatively higher costs of doing business these days, plenty of start-ups are still launching. One thing that every new company needs, along with a business plan, is a sensible…
Tax advantages of hiring your child at your small business
2021 – 04/05 As a business owner, you should be aware that you can save family income and payroll taxes by putting your child on the payroll. Here are some considerations. Shifting business earnings You can turn some of your high-taxed income into tax-free or low-taxed income by shifting some business earnings to a child…
Numerous tax limits affecting businesses have increased for 2022
2022 – 01/18 Many tax limits that affect businesses are annually indexed for inflation, and a number of them have increased for 2022. Here’s a rundown of those that may be important to you and your business. Social Security tax The amount of an employee’s earnings that is subject to Social Security tax is capped…
Could your business benefit from a PEO?
2022 – 05/11 Keeping up with employment regulations and health care benefits can be a struggle for many small to midsize businesses. One potential solution is engaging a professional employer organization (PEO). PEOs employ experts who understand the minutiae of many HR functions. Moreover, these firms can handle difficult, recurring tasks such as managing employment…
ERC Safe Harbor
2021 – 08/11 The IRS has provided a safe harbor for employers claiming the Employee Retention Credit (ERC). The safe harbor allows employers to exclude certain amounts from their gross receipts when determining their eligibility for the ERC. Specifically, Rev. Proc. 2021-33 allows employers to exclude the following amounts from gross receipts: the amount of…
3 specialized IT leadership positions for growing businesses
2022 – 01/12 For many businesses, technology has changed from something they use to something they do. When a company reaches a point where IT plays a central role in operations and productivity, ownership might want to create one or more leadership positions to specifically oversee tech-related matters and strategy. Often, this means a Chief…
Like every business, a start-up needs a sensible budget
2022 – 11/16 An impressive 432,834 new business applications for tax identification numbers were submitted during October 2022, according to the U.S. Census Bureau. Indeed, despite the relatively higher costs of doing business these days, plenty of start-ups are still launching. One thing that every new company needs, along with a business plan, is a sensible…
Tax advantages of hiring your child at your small business
2021 – 04/05 As a business owner, you should be aware that you can save family income and payroll taxes by putting your child on the payroll. Here are some considerations. Shifting business earnings You can turn some of your high-taxed income into tax-free or low-taxed income by shifting some business earnings to a child…
Numerous tax limits affecting businesses have increased for 2022
2022 – 01/18 Many tax limits that affect businesses are annually indexed for inflation, and a number of them have increased for 2022. Here’s a rundown of those that may be important to you and your business. Social Security tax The amount of an employee’s earnings that is subject to Social Security tax is capped…
Could your business benefit from a PEO?
2022 – 05/11 Keeping up with employment regulations and health care benefits can be a struggle for many small to midsize businesses. One potential solution is engaging a professional employer organization (PEO). PEOs employ experts who understand the minutiae of many HR functions. Moreover, these firms can handle difficult, recurring tasks such as managing employment…
ERC Safe Harbor
2021 – 08/11 The IRS has provided a safe harbor for employers claiming the Employee Retention Credit (ERC). The safe harbor allows employers to exclude certain amounts from their gross receipts when determining their eligibility for the ERC. Specifically, Rev. Proc. 2021-33 allows employers to exclude the following amounts from gross receipts: the amount of…
3 specialized IT leadership positions for growing businesses
2022 – 01/12 For many businesses, technology has changed from something they use to something they do. When a company reaches a point where IT plays a central role in operations and productivity, ownership might want to create one or more leadership positions to specifically oversee tech-related matters and strategy. Often, this means a Chief…
Like every business, a start-up needs a sensible budget
2022 – 11/16 An impressive 432,834 new business applications for tax identification numbers were submitted during October 2022, according to the U.S. Census Bureau. Indeed, despite the relatively higher costs of doing business these days, plenty of start-ups are still launching. One thing that every new company needs, along with a business plan, is a sensible…
Tax advantages of hiring your child at your small business
2021 – 04/05 As a business owner, you should be aware that you can save family income and payroll taxes by putting your child on the payroll. Here are some considerations. Shifting business earnings You can turn some of your high-taxed income into tax-free or low-taxed income by shifting some business earnings to a child…
Numerous tax limits affecting businesses have increased for 2022
2022 – 01/18 Many tax limits that affect businesses are annually indexed for inflation, and a number of them have increased for 2022. Here’s a rundown of those that may be important to you and your business. Social Security tax The amount of an employee’s earnings that is subject to Social Security tax is capped…