The American Rescue Plan has now been signed into law. It includes an expansion of the child tax credit for 2021. That plan expands the age for qualifying children to include 17-year-olds. It increases the credit to $3,000 per child for many families (with $3,600 being the amount for children under age 6). The $2,500 earnings floor is removed and the credit will be fully refundable. Finally, half of the credit will be paid in advance by the IRS making monthly payments to families from July to December 2021.
In this episode, I touch on the child tax credit expansion and discuss the IRS role in distributing those payments of the credit in 2021. The child tax credit and the earned income credit are times that the IRS is in the role of benefits distributor. That is a change for the IRS from compliance enforcement. I look at the dichotomy as the IRS faces their pivot from one role to another. What will their approach be for the future?
Note: As of the recording, the American Rescue Plan had not passed into law yet.
Episode 178: OIC Updates and Other Tax Topics
Episode 177: Boechler Decision and ABA May Tax CDP Presentation
Episode 176: PPS Issues and Criminal Tax Referrals
Episode 175: Signing for Clients and More LITC Grant Report Talk
Episode 174: PPS and the LITC Grant Report
Episode 173: Tax Court - Boechler and IRS Chief Counsel Answers
Episode 172: John Gilmore Interview on ID.me
Episode 171: 2022 ABA Section of Taxation Midyear Meeting
Episode 170: State and Federal Tax Issues
Episode 169: 2022 New Year Tax Resolutions
Episode 168: 2021 End of Year Wrap-Up
Working With TAS in 2021
Episode 166 - Offers in Compromise Review and Updates
Episode 165: FAQs and Other Updates
Episode 164: Should We Have Filing Statuses?
Episode 163: Tax Court Withdrawals
Episode 162: Tax Court and ABA Tax Meeting Followup
Episode 161: Tax Court and ABA Virtual Fall Tax Meeting Update
Episode 160: Client Deadlines
Episode 159: Stimulus Attorney at Legal Aid Discussion
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