The Tax Book is pretty quiet on this subject?
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So is everyone else. President hasn't even signed it yet.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
[QUOTE=BOB W;n305037]So is everyone else[QUOTE]
The Tax Institute put out a very good summary yesterday. It’s a worthwhile weekly and free.Comment
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Here's one example from the Tax Institute
Child tax credit – 2021 only
The child tax credit (CTC) is temporarily increased for tax year 2021 and made advanceable and fully refundable.- The CTC is $3,600 per qualifying child age 0 through age 5 and $3,000 per qualifying child age 6 through age 17. Note that the 2021 CTC is available for children age 17.
- The CTC is fully refundable, meaning that there is no earned income requirement and the non-refundable and refundable maximums are the same. The taxpayer must live with the qualifying child in the U.S. or Puerto Rico for more than half the year.
- Example: Shirley has one child age 4. Her earned income is $1,000 and total income is $7,000. Her tax liability is $0. For 2021, Shirley is eligible for a refundable CTC of $3,600.
- A “double” phaseout applies to the 2021 CTC.
- The first phaseout reduces the CTC down to the pre-2021 $2,000 per child level. The phaseout begins when AGI reaches $75,000 S ($112,500 HoH, $150,000 MFJ).
- The second phaseout range further reduces the CTC from $2,000 per child to $0 and begins when AGI reaches $200,000 S and HoH ($400,000 MFJ).
- The IRS is directed to issue one-half of the expected 2021 CTC in equal periodic payments starting in July 2021 based on 2020 data (or 2019 if not available). The credit will be reconciled on 2021 tax returns and any additional amount, including the remaining half will be issued.
- Advances will generally not be offset but the actual credit is subject to offsets.
- Taxpayers will have an opportunity to opt out of advances.
- Excess advance payments must generally be repaid. However, repayment obligations will be reduced for lower income taxpayers if the excess is based on a change in the number of qualifying children.
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I believe he did sign it after his morning nap.Comment
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>> Note that the 2021 CTC is available for children age 17.
This will cause confusion in other years because people may expect CTC for kids over 16 thinking the law changed for good! Same with the $1400 stimulus checks that makes dependents over 16 also eligible!Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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So what? There will also be confusion in five years when almost all individual TCJA provisions expire (at least the ones that haven't been tinkered with already)! Did you make the same comment then?Originally posted by ATSMAN View Post
Now if majority rule can continue for more than the next few years, perhaps the CTC changes will be made permanent!
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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how to handle dead people that died in 2019 or 2020. or baby that was born in 2020 and died in 2020? anyone have an idea?Comment
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IMHO TCJA changes were relatively easier to explain to my clients. These changes especially the refundable portions will have a long term memory!Originally posted by Rapid Robert View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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From some of the explanations (JoA, RubinBrown, etc.) if someone died before 2020, they do not receive RRC based on 2020. If someone dies during 2020, they DO receive RRC based on 2020 -- no matter what the 2020 DOD. A baby born and died in 2020 WITH A SSN also gets RRC based on 2020 -- no matter what the 2020 DOD or how long they lived. But I'm going from explanations (granted from learned instructors like Tony Nitti writing in Forbes and the most recent JoA articles), so you'll want to read the new ARPA law itself to have substantial authority.Comment
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That is what my understanding is also. DOD in 2020 don't matter as long as they were alive 1 day in 2020. I guess one can argue that a baby born alive in 2020 but died shortly (may be within the hour) thereafter did live 1 day in 2020!Originally posted by Lion View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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No need to "argue" it, it's been that way forever.Originally posted by ATSMAN View Post
"Death or birth of child. A child who was born or died during the year is treated as having lived with you more than half the year if your home was the child's home more than half the time he or she was alive during the year. The same is true if the child lived with you more than half the year except for any required hospital stay fol-lowing birth.
Child born alive. You may be able to claim as a dependent a child born alive during the year, even if the child lived only for a moment. State or local law must treat the child as having been born alive. There must be proof of a live birth shown by an official document, such as a birth certificate. The child must be your qualify-ing child or qualifying relative, and all the other tests to claim the child as a dependent must be met.
Stillborn child. You can't claim a stillborn child as a dependent."
(Pub 501"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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What's up with that???Originally posted by Bucky View PostTaxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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