Monthly News: April 2021
The deadline for filing the 1040 returns for 2020 has been extended until May 17, 2021. However, the deadline for paying the 1st estimated payments remains on April 15. The amount of the estimated payments is based on the tax liability of the previous year. Unfortunately, there is no way to the amount of the 1st estimated payment without previously filing the 2020 return.
The child tax credit has been increased from $2,000 per child to $3,000. And for children under age 6 the credit is $3,600. The amount will be limited by your adjusted gross income (AGI). The expanded child tax credit is temporary and only applies to 2021. However, Democratic lawmakers would like to make it permanent. The IRS is required to pay of the credit in advance, however, people will have the option to opt out of the advance payment.
The IRS is creating an online tool so that you can opt out of the advance child tax credit payment.
The third stimulus for $1,400 per person will be an advance payment of a tax credit for the 2021 tax return.
Con artists are using the stimulus as a way to scam people. Be wary of phone calls and emails from fraudsters who are trying to steal your financial information by posing as the IRS.