How This New Income Tax Rule Could Affect You
In 2021, the IRS sent out child tax credit payments in advance of the tax season. The payments began in August 2021 and ended in December 2021.
If you received any advance child tax credit payments in 2021, be sure to have this information available to your tax preparer to report on your 2021 tax return.
The IRS sent notices with amounts to help with this. But if you didn't receive a notice, you can still inform your tax preparer of the amount you received so it can be included on your tax return. The IRS has warned that failure to report the correct amount on your tax return will result in your refund being delayed.
If you don't remember the amount you received, you can create an ID.me account with the IRS that will allow you to view this information, as well as all of
your tax records: https://api.id.me/en/registration/new.
Before getting too excited, it’s worth keeping in mind that tax refunds will be reduced by any money you receive now. Also, if the IRS sends you too much money, you will have to pay it back at tax time. In addition, if you have any changes in your dependents, you will need to access the IRS website and make the amendments.
To ascertain if you qualify for the advanced payments or want to see the payment date schedule, click on the IRS link here. If you need any assistance obtaining the child tax credit payments, then get in touch with us today! We will look at previous tax returns to help you determine if the IRS is sending you the correct amount of money. We can also advise you on other accounting matters.
At Pinnacle 1 – Goose Creek, we have twenty years of accounting experience and can help you with all your bookkeeping and tax preparation needs in Goose Creek, South Carolina.
Our goal is to make life easier for our clients. So whether you’re an individual in need of help to file your tax return, or a business owner looking to keep your books in order, we’re here to help.
We serve clients across Goose Creek, North Charleston, Hanahan, Moncks Corner, Ladson, and the surrounding areas.
If you have any questions about the new tax regulations, please contact us by clicking here. To learn more about the services we have to offer, please click here.