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. However, the change from the past is that the child tax credit has increased to $3,600 a year for each child up to age 6 and $3,000 for each one ages 6 to 17. The advanced child tax credit accounts for half of the amount of the credit per child to be paid during 2021 with a reconciliation when taxes are filed.
Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult a tax, legal and accounting advisors before engaging in any transaction or submitting any IRS form.
Ramin Mohammad
Ramin Mohammad is a lawyer and CPA with over 15 years of experience including working in audits, teaching, and in big law. Ramin helps clients on both personal and business related tax issues ranging from a multitude of practice areas including tax structuring, planning and cross jurisdictional taxes. His client-base expands throughout the US and overseas offering tax consulting, tax planning and tax preparation.
