2021 Child Tax Credits

Many taxpayers with children have been getting monthly deposits from the IRS and have been wondering what the catch is.  These payments are actually prepayments of your 2021 Child Tax Credit, which the government recently expanded.  Since this is a prepayment of a credit, that means that this money won’t be available to you to credit against your tax liability when you do your 2021 tax return.  So, in effect, if you were going to get a refund for 2021, then your refund will be less by the amount of the prepayments.  If you were going to owe in 2021, then you’ll owe more by the amount of the prepayment.  As always, if you have any questions, please give one of our CPAs a call.  We offer complimentary consultations to potential new clients.

UPDATE on April 15th Deadline

In addition to the IRS extending the deadline for filing 1040’s to May 17th, Georgia has announced they will also conform to this deadline date as well.

http://www.gscpa.org/content/Home/News/Professional-News/Georgia-Individual-Income-Tax-Deadline-Extended.aspx

April 15th Tax Deadline

The IRS has pushed back the 4/15 deadline to 5/17.  This is an automatic extension of both the filing and the payment requirement for 2020 tax returns.

As of today, March 18, 2021,  this does not apply to quarterly estimates for 2021 due 4/15, and we do not know yet if the state will also push back their deadline.