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Tag: CTC

Posts Tagged ‘CTC’

What’s New for the 2020 Tax Year?

Posted by Manisha Hansraj on January 15, 2021
Last modified: January 18, 2021
2020 tax year

Here’s the breakdown of all the changes.

Standard deduction

For the 2020 tax year, the standard deduction amounts have increased. Here are the amounts below.

  • Single or Married filing separately – $12,400
  • Married filing jointly and Qualifying widow(er) – $24,800
  • Head of Household – $18,650

For taxpayers who are blind or at least 65 years old, they can claim an additional standard deduction. The standard deduction is $1,300 and $1,650 for the single or head of household filing status.

Taxpayers who are both blind and of eligible age receive a doubled additional standard deduction.

Recovery Rebate Credit (Stimulus Payment)

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Understanding Joe Biden’s Tax Plan

Posted by Manisha Hansraj on December 18, 2020
Last modified: December 18, 2020
joe biden's tax plan

Many Americans want to know how our future president’s tax plan will affect them.

Biden’s tax plan will affect wealthier Americans, corporations, and everyday individual taxpayers. He also plans on making significant tax revisions on Trump’s previous tax plan which took place in 2017.

Skip the tax jargon by taking a look at this quick breakdown.

Key Changes

Here are the major findings in Biden’s tax plan.

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Prepare for the 2019 Tax Season!

Posted by Manisha Hansraj on November 5, 2018
Last modified: March 19, 2019

tax cuts and jobs act

2018 is coming to an end.

It seems like the year went by so quickly. Now, are you ready for the new tax season? The 2019 tax season brings in a variety of changes that will ultimately affect how you file and Form 1040.

Read below to find out what you need to know before filing your 2018 tax return.

Check your withholding

Due to the Tax Cuts and Jobs Act (TCJA), taxpayers may receive a lesser refund or a tax bill because of their decreased withholding. We advise that you should definitely check your withholding if you have a two-income family, work multiple jobs or part of the year, have children to claim the Child Tax Credit or older dependents, you itemize your deductions on prior year returns, receive high tax refunds or tax bills for the prior year or high-income taxpayers in general. Be advised that if you don’t have enough income tax withheld from your employer, you can be subject to a high tax due at the end of the year.

If you did not fill out an updated W-4 for 2018, click here to find out if you should adjust your withholding with the IRS Withholding Calculator.

The standard deduction increases

The TCJA doubles all filing status’ standard deduction. Below you will find out how next year will be different. (more…)

11 Tax Tips For Your Back-to-School Use!

Posted by Manisha Hansraj on August 21, 2018
Last modified: August 24, 2018

tax free week 2018

Education is expensive, so here’s some helpful tips!

Get your tax break from claiming your kids.

  1. Don’t forget to claim up to $1,000 for the Child Tax Credit.
    (Your child must be under 17, live more than half the year with you, a dependent on your tax return, be directly related to you, a U.S. citizen, national or resident alien)
  2. Claim the child and dependent care credit for child care expenses for your child under 13.
  3. You can claim the Earned Income Credit (EIC) depending on your income.
  4. The Adoption Tax Credit reduces your tax for expenses such as Court, attorney fees, travel and meal expenses. (You can also claim the Special Needs Credits for all relating expenses)
  5. Claim the Education Credit for education expenses if you’re paying for your child’s college education.

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The Child Tax Credit & Additional Child Tax Credit Changes for 2018!

Posted by Manisha Hansraj on July 23, 2018
Last modified: January 23, 2019

child tax credit 2018

Let your kids treat you by giving you the tax break you deserve.

Typically, for the prior tax years, (including the tax year 2017) you can receive up to $1,000 per qualifying child for the Child Tax Credit (CTC). You may even get the Additional Child Tax Credit (ACTC) which is a refundable credit that you may receive if your CTC exceeds the total amount of income taxes you owe. However, you need an income of at least $3,000. It phases out for taxpayers with the AGI of $75,000 or greater and $110,000 for joint filers.

The good news is that the CTC and the ACTC increases for the next tax year.

Read on to find out the changes for 2018.

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How do I Qualify for the Child Tax Credit?

Posted by Divya Hansraj on June 16, 2017
Last modified: June 6, 2018

Oh, the joys of having children!

Today, it is difficult for parenthood to have its rewards. Children want us to buy them the most expensive toys and clothing and that spending can sometimes feel fruitless. As with struggling to finish a marathon, we strive, hoping there will be a light at the end of the tunnel. Luckily the IRS understands this struggle and gives parents a little something back. The Child Tax Credit and the Additional Child Tax Credit serve as the cushioned shoe inserts that help us finish.

Child Tax Credit (CTC) Facts:

  • You must have a qualifying child.
  • You must have earned greater than $3000 of Income.
  • Each child can receive up to $1000.

 

What is a qualifying child?

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