August News Flash
Dear Clients & Friends,
Millions of parents received their second Child Tax Credit (CTC) checks on Friday, August 13. However, we understand that many are still waiting for their first and second payments or wonder if they should opt out of the credit altogether. We also understand the frustration from many of you who haven’t yet received your 2020 income tax refunds or are still waiting for your 2020 tax returns to process. (The IRS announced that it was still processing 15.6 million individual tax returns as of mid-July, so a significant backlog remains.)
To help you track your CTC money or check on the status of your tax returns, as well as address other immediate concerns or frequently asked questions (FAQ’s) many of you have, we’ve added a Helpful Resources page to our website.
Third-Quarter Tax Payments Due 9/15
While many of your FAQ’s are available at your fingertips, it’s essential to keep in mind any changes to your income as we approach third-quarter tax payments, due on September 15. Therefore, we advise you carefully assess your tax situation, including how the advanced child care credit, a delay in 2020 tax return processing, and other tax implications can impact your estimated tax liability. In addition, it’s important to calculate if a quarterly payment is required so that you can:
- Avoid any potential penalties.
- Identify tax planning opportunities to minimize your overall tax liability.
- Determine if you should opt out of the Advance Child Tax Credit.
- Take control of your finances to avoid unpleasant surprises come April 15, 2022.
For your convenience and ease of reference, direct links to pay your IRS and state estimated tax payments, due on September 15, are available on our website.
Advanced Child Tax Credit Payments
Advance Child Tax credit payments are up to $250 a month for each child ($300 a month for children under 6). You can use the designated CTC Update Portal on our new Helpful Resources page to check the status of your first two Child Tax Credit payments or to opt out of the advance altogether. A few helpful tips to consider when accessing your credit details through the portal:
- You’ll register with your IRS username and ID.me account information.
- First-time users will need a photo ID.
- The IRS offers a payment trace as a way to track your funds. (Handy for your 2021 tax filing!)
- If you need to update your bank account information or opt out of the advanced payment option before the third payment on September 15, you’ll need to do so by August 30.(Note: If you file jointly, each parent will need to unenroll.)
As always, if you have any questions or concerns about any individual or business tax need, we are happy to help and look forward to hearing from you.
Stay safe & healthy,
The CJBS Team