Tax Credits & Deductions

IRS has sent millions of taxpayers Letter 6419 which details amounts for the advanced child tax credit payment. The IRS has indicated, however, that some of these letters may have the incorrect amounts. The IRS is informing taxpayers to keep the Letter 6419 and to check the IRS site to determine if a different amount […]

Some taxpayers may be in for a surprise when filing their taxes with repayment of the child tax credit. The advanced child tax credit was not free money but acted more of an advance to be paid to eligible families earlier than when filing tax return. So why will some taxpayers need to pay it

December 15 marked the last of the advanced child tax credit payments. Those taxpayers that were eligible to receive the advanced child tax credit payments were receiving checks from the IRS on the 15th of every month starting in July. There is a plan to extend these through the Build Back Better legislation before the

There is good news for taxpayers who want to donate before year end but don’t itemize. For 2021, those taxpayers that are taking the standard deduction will be able to take an above the line deduction for charitable deductions. For single filers, the amount is $300 and for married filing jointly, the amount is $600.

Part of President Biden’s “Build Back Better” proposal includes increasing the EV tax credit from $7,500 to $12,500. The current program caps the $7,500 tax credit to 200,000 electric vehicles per manufacturer. The updated proposal is also looking at changing it from a tax credit to an incentive that can be utilized even if a tax

Today, qualifying families with children should have seen a deposit from the treasury for the advanced child care credit. This money is not free money that won’t be accounted for during tax season and in fact is just an advance of the child tax credit that most families claim as a credit against taxes owed.