Telephone: (303) 449-3060
Helping people achieve their financial goals since 1991
Child Tax Credits
From July 15th through December 15th, eligible parents with direct deposit information on file with the IRS will receive monthly ADVANCE PAYMENTS on their 2021 Enhanced Child Tax Credit (the credit has been increased from $2,000 per child and now also includes 17-year-olds). These advance payments are based on your 2020 income, and you will be eligible for the maximum credit if your 2021 Modified Adjusted Gross Income is under:
  • $150,000 for Married Filing Jointly or Qualified Widow(er)s
  • $112,500 for Head of Household filers
  • $75,000 for Single and Married Filing Separately

How much will each family get? 
  • For every child age 0-5 (in 2021), families will get up to $3,600 or $300 per month. 
  • For every child age 6-17 (in 2021), the amount is $3,000 or $250 per month
 
Parents will receive half the estimated credit as advance payments through December 2021 (a maximum of $1500-$1800 depending on each child’s age). Then, when filing their 2021 tax return in 2022, their eligibility will be determined based on their actual 2021 Modified AGI (see above). Parents should keep track of how much in total they receive between July and December 2021 as that amount will be needed to reconcile/adjust how much more they qualify for as a credit on their 2021 tax returns.  
 
Is this taxable income? 
No, this is not taxable income. But if you receive more in advance payments than what you actually qualify for when filing your 2021 tax return, this excess will have to be paid back as part of your 2021 tax filing. So opting out is available (you must unenroll by August 2 for the August payment), and you can check eligibility, change your profile, and track payments at the following IRS website: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
 
The American Rescue Plan Act has also increased the child and dependent care credit. Feel free to reach out to your Tax Manager to help answer questions on these topics or any 2021 tax planning concerns you may have. 
 
Upcoming Deadlines
If your tax returns have been extended, the deadlines for submitting your information to us are coming up soon!
  • August 2 for LLC's, Partnerships, November year-end C-corporations, and S-corporations
  • September 1 for Individuals and December year-end C-corporations
  • August 16 for Trusts
  • October 1 for Non-profits
So Many Scams...
Red torn paper with a text of Scam Alert with copy space.
Data breaches are way up this year with a surge in phishing, ransomware and supply chain hacks (as in the Colonial Pipeline and Kaseya cyberattacks). All of us, including businesses both large and small, must remain vigilant! Use multi-factor authentication, unique passphrases, and secure connections because stolen login credentials are the most valuable and sought-after pieces of information for cyber criminals.

PANDEMIC-RELATED SCAMS:
  • Child Tax Credit fraud
  • Unemployment Insurance fraud, often with identity theft
  • Economic Impact Payment theft
  • COVID-19 vaccine lottery and sweepstakes scams
  • COVID-19 re-opening job scams

IRS DIRTY DOZEN LIST - click here for more scams: https://www.irs.gov/newsroom/dirty-dozen

AVOID BEING SCAMMED:
  • If it sounds too good to be true, it is!
  • Never give your credit card or bank information out to receive money!
  • Always go directly to the source to verify information (emails, texts, and websites can all be made to look legitimate)!
  • Legitimate jobs do not require personal data like bank accounts or social security numbers until after hiring!
  • The IRS will never request personal information by email, text, or social media, and will generally contact you first by mail, not by phone!
  • Never click on a link that was unsolicited!
SUMMER OFFICE HOURS:
Monday through Thursday 8:00 AM to 5:00 PM
Friday 8:00 AM to NOON


The office will be closed on September 3rd and 6th for Labor Day.
Enjoy your summer!

Nancy Carter, Office Manager
Boulder CPA Group