Ask the CPA
The latest on a big pocketbook issue – Child Tax Credit payments
Welcome back – I have emerged from my two-month after tax season hibernation. I will have new columns some weeks for the remainder of the year, then will be back weekly next spring with news and advice for the 2021 tax year.
The Coin Toss:
Jack the Heeler is doing fine. He turned one in June. I am reluctantly beginning to realize that there is no “he will outgrow this puppy energy after a year” coming any time soon. I suspect his high-octane motor is going to be around for a long time, God willing and if the creek don’t rise. That is not a bad thing. Lord knows without all the exercise I get along with him, my Braum’s ice cream habit would be a big problem. So, a win-win for me.
Some big pocketbook issues happening recently, and I have seen some Facebook discussions about this topic. Here is the latest:
Last Wednesday, July 14, eligible Americans started receiving monthly Child Tax Credit payments via direct deposit and paper check. That first batch went to about 35 million families, 86% of which were direct deposits. These payments will continue each month – the upcoming payment dates are 8/13, 9/15, 10/15, 11/15, and 12/15. The legislation provides for $300 monthly payments for each child under age 6, and up to $250 per month for each child ages 6 through 17. If you received a July payment, you will also receive a payment each month for the rest of 2021 unless you unenroll.
Some fine print:
- The July 15 payments went to eligible families who filed 2019 or 2020 income tax returns.
- Tax returns processed by June 28 are reflected in these payments. This includes folks who do not normally file a return but have successfully registered for either these or the stimulus payments.
If you have not filed a tax return in the last two years, you can register for these and other economic impact payments here: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool
You can check your eligibility for these payments here: https://www.irs.gov/credits-deductions/advance-child-tax-credit-eligibility-assistant
If you would like in-person help with registration, the IRS, along with churches, community groups and others, are hosting events around the country July 23-24. They are also providing help in preparing and filing tax returns. The bad news is our closest event is in Oklahoma City. Perhaps a good chance to visit the National Cowboy Museum. More information here: https://www.irs.gov/newsroom/advance-child-tax-credit-free-tax-prep-days
I am donating an hour of free CPA advice for any Webb City folks with questions on this program or any other financial topic you may have. Drop me a note at firstname.lastname@example.org
Hail Mary TD:
Like the entire 4 state area, I have known about the success of the Webb City High School football program for quite a while. I played a little ball myself in the late ’70s, and we were fairly good. Not as good as we thought we were, but not bad. Living and raising my family in Dallas for so many years, I had a blast listening to guys talk about this Texas team or that, how they have won three state championships, whatever. The fun part was patiently listening to these guys, then saying something like, “You have likely never heard of my hometown – Webb City, Missouri. That program you mentioned is impressive. Let me tell you about a guy who graduated with one of my little brothers. His name is John Roderique.”
Thanks to John, and all the folks who have helped us turn into a national football powerhouse, I am like a child waiting for Christmas morning. I am sure you all have heard, but Patrick dad-gum Mahomes is co-hosting – along with John – a football camp at the stadium July 31. Of all the high school programs in the state, our MVP QB, the best damn quarterback in the NFL, picked three. One of them is us. Thank you, Coach.
Thanks for reading. Please address any questions to email@example.com.
Christopher Hughes, CPA