by admin | Jul 14, 2021 | Financial Planning, IRS
WASHINGTON — The Internal Revenue Service today launched two new online tools designed to help families manage and monitor the advance monthly payments of Child Tax Credits under the American Rescue Plan. These two new tools are in addition to the Non-filer Sign-up Tool, announced last week, which helps families not normally required to file an income tax return to quickly register for the Child Tax Credit.
The new Child Tax Credit Eligibility Assistant allows families to answer a series of questions to quickly determine whether they qualify for the advance credit.
The Child Tax Credit Update Portal allows families to verify their eligibility for the payments and if they choose to, unenroll, or opt out from receiving the monthly payments so they can receive a lump sum when they file their tax return next year. This secure, password-protected tool is available to any eligible family with internet access and a smart phone or computer. Future versions of the tool planned in the summer and fall will allow people to view their payment history, adjust bank account information or mailing addresses and other features. A Spanish version is also planned.
Both the Child Tax Credit Eligibility Assistant and Child Tax Credit Update Portal are available now on IRS.gov.
The American Rescue plan increased the maximum Child Tax Credit amount in 2021 to $3,600 per child for children under the age of 6 and to $3,000 per child for children ages 6 through 17. The advance Child Tax Credit payments, which will generally be made on the 15th of each month, create financial certainty for families to plan their budgets. Eligible families will receive a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child ages 6 through 17. The first monthly payment of the expanded and newly-advanceable Child Tax Credit will be made on July 15. Most families will begin receiving monthly payments automatically next month without any further action required.
“IRS employees continue to work hard to help people receive this important credit,” IRS Commissioner Chuck Rettig said. “The Update Portal is a key piece among the three new tools now available on IRS.gov to help families understand, register for and monitor these payments. We will be working across the nation with partner groups to share information and help eligible people receive the advance payments.”
More features coming to the Update Portal soon
Coming soon, families will be able to use the Child Tax Credit Update Portal to check the status of their payments. In late June, people will be able to update their bank account information for payments starting in August. In early August, a feature is planned that will allow people to update their mailing address. Then, in future updates planned for this summer and fall, they will be able to use this tool for things like updating family status and changes in income.
For more information see the FAQs, which will continue to be updated.
Update Portal allows people to unenroll
Instead of receiving these advance payments, some families may prefer to wait until the end of the year and receive the entire credit as a refund when they file their 2021 return. In this first release of the tool, the Child Tax Credit Update Portal now enables these families to quickly and easily unenroll from receiving monthly payments.
The unenroll feature can also be helpful to any family that no longer qualifies for the Child Tax Credit or believes they will not qualify when they file their 2021 return. This could happen if, for example:
- Their income in 2021 is too high to qualify them for the credit.
- Someone else (an ex-spouse or another family member, for example) qualifies to claim their child or children as dependents in 2021.
- Their main home was outside of the United States for more than half of 2021.
Accessing the Update Portal
To access the Child Tax Credit Update Portal, a person must first verify their identity. If a person has an existing IRS username or an ID.me account with a verified identity, they can use those accounts to easily sign in. People without an existing account will be asked to verify their identity with a form of photo identification using ID.me, a trusted third party for the IRS. Identity verification is an important safeguard and will protect your account from identity theft.
Anyone who lacks internet access or otherwise cannot use the online tool may unenroll by contacting the IRS at the phone number included in your outreach letter.
Who is getting a monthly payment
In general, monthly payments will go to eligible families who:
- Filed either a 2019 or 2020 federal income tax return.
- Used the Non-Filers tool on IRS.gov in 2020 to register for an Economic Impact Payment.
- Registered for the advance Child Tax Credit this year using the new Non-Filer Sign-up Tool on IRS.gov.
An eligible family who took any of these steps does not need to do anything else to get their payments.
Normally, the IRS will calculate the advance payment based on the 2020 income tax return. If that return is not available, either because it has not yet been filed or it has not yet been processed, the IRS is instead determining the payment using the 2019 tax return.
Eligible families will receive advance payments, either by direct deposit or check. Each payment will be up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17. The IRS will issue advance Child Tax Credit payments on these dates: July 15, August 13, September 15, October 15, November 15 and December 15.
The IRS urges any family who hasn’t yet filed their 2020 return – or 2019 return – to do so as soon as possible so they can receive any advance payment they’re eligible for. At the same time, the agency cautions that tax returns must be processed by June 28 to be reflected in the first batch of monthly payments scheduled for July 15, so eligible families filing now will likely receive payments in the following months. Even if monthly payments begin after July, the IRS will adjust the monthly amounts upward to ensure that people still receive half of their total eligible Child Tax Credit benefit by the end of the year.
Filing soon will also ensure that the IRS has their most current bank account information, as well as key details about qualifying family members. This includes people who don’t normally file a tax return, such as families experiencing homelessness and people in underserved groups.
For most people, the fastest and easiest way to file a return is by using IRS Free File, available only on IRS.gov. Besides qualifying them for these advance payments, using Free File will also enable them to claim other family-oriented tax benefits, if eligible, such as the Earned Income Tax Credit and the Recovery Rebate Credit/Economic Impact Payments.
New tool helps non-filers register
For families who don’t normally file an income tax return, another easy option is to register for these advance payments using the new Non-filer Sign-up Tool, introduced recently, and available only on IRS.gov. Among other things, the tool asks users to supply current bank information, along with key details about themselves and their qualifying children. The tool then automatically fills in a very basic 2020 federal income tax return that is electronically sent to the IRS. The new tool was developed in partnership with Intuit and the Free File Alliance.
Child Tax Credit Eligibility Assistant unveiled
Before filing a return or using the Non-filer Sign-up Tool, families unsure of whether they qualify for either the credit or the advance payments may want to check out another new tool — the Child Tax Credit Eligibility Assistant. By answering a series of questions, the tool helps people determine if they qualify for the credit and the payments.
The IRS emphasized that because the Child Tax Credit Eligibility Assistant requests no personalized information, it is not a registration tool, but merely an eligibility tool. Nevertheless, it can still help an eligible family determine whether they should take the next step and either file an income tax return or register using the Non-filer Sign-up Tool.
Personal help available
IRS and its partners are helping families register for the payments using the Non-filer Sign-up Tool. During late June and early July, free events will take place in Atlanta, Brooklyn, Detroit, Houston, Las Vegas, Los Angeles, Miami, Milwaukee, Philadelphia, Phoenix, St. Louis and Washington, D.C. More details will be available soon on IRS.gov.
Child Tax Credit 2021
The IRS has created a special Advance Child Tax Credit 2021 page, designed to provide the most up-to-date information about the credit and the advance payments. It’s at IRS.gov/childtaxcredit2021.
Among other things, it provides direct links to the Non-Filer Sign Up Tool, the Child Tax Credit Update Portal, the Child Tax Credit Eligibility Assistant, a set of frequently asked questions and other useful resources.
Child Tax Credit changes
The American Rescue Plan raised the maximum Child Tax Credit in 2021 to $3,600 for children under the age of 6 and to $3,000 per child for children ages 6 through 17. Before 2021, the credit was worth up to $2,000 per eligible child.
The new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of:
- $75,000 or less for singles,
- $112,500 or less for heads of household and
- $150,000 or less for married couples filing a joint return and qualified widows and widowers.
For most people, modified AGI is the amount shown on Line 11 of their 2020 Form 1040 or 1040-SR. Above these income thresholds, the extra amount above the original $2,000 credit — either $1,000 or $1,600 per child — is reduced by $50 for every $1,000 in modified AGI. In addition, the credit is fully refundable for 2021. This means that eligible families can get it, even if they owe no federal income tax. Before this year, the refundable portion was limited to $1,400 per child.
Help spread the word
The IRS urges community groups, non-profits, associations, education organizations and anyone else with connections to people with children to share this critical information about the Child Tax Credit as well as other important benefits. Among other things, the IRS is already working closely with its community partners to ensure wide access to the Non-filer Sign-up Tool and the Child Tax Credit Update Portal. The agency is also providing additional materials and information that can be easily shared by social media, email and other methods.
For the most up-to-date information on the Child Tax Credit and advance payments, visit Advance Child Tax Credit Payments in 2021.
Originally posted on IRS.gov
by admin | Jul 8, 2021 | Health & Wellness
Summer is here and so many of us work hard to lose a few pounds before summer vacation but then get to our vacations and ‘’want to live it up!’’ The problem is that then we end up bloated and unhappy with those decisions. Vacation is supposed to be a time to relax and unwind and shouldn’t make you worrisome or apprehensive about your fitness goals. Here are a few tips to stay on track with your goals while still being able to enjoy yourself:
Make a Plan
What are you looking forward to the most? Eating at a certain restaurant? A certain food in general? Try to make good choices with your food and activity all day so that you won’t feel guilty if you indulge in eating your favorite burger. Allow yourself a splurge, enjoy it, but then move on and get back on track.
Drink Water
Drinking enough water may be the last thing you are thinking about on vacation but it is essential for your health and to help you stay on track. Drinking water not only helps your body function properly but also helps you feel full before and during meals so you eat less. Even the slightest bit of dehydration can cause you to believe you need food when, in reality, you just need some water.
In addition, water is a great choice to substitute for alcohol. Drinking water is also a good way to slow down the amount of alcohol you’re drinking and helps you to avoid hangovers or getting the ‘’munchies’’ later that night and the next day.
Schedule in Movement
Make a commitment to schedule in daily movement. The goal isn’t to make strength improvements or lose weight but rather to stay consistent to keep momentum. If you enjoy walking, jogging, or biking, it’s time to take go into the great outdoors to enjoy your new surroundings. You can also engage in new opportunities to move your body in ways that aren’t available to you at home, like: surfing, swimming, rock climbing and paddle boarding.
Don’t Skip Meals
Whether you’re rushing to tourist sites or heading to the beach for the day, it’s easy to lose track of time and skip a meal. But, skipping a meal can easily lead to overeating at your next meal. Keeping your hunger in check is key so pack a few nutritious, protein packed snacks whenever you head out.
Remember Your Goals
When you are struggling to turn down that second serving of dessert, remember why you wanted to get healthy in the first place. Is it to feel confident? Get your cholesterol numbers down? To be able to run and play with your kids? Find something that you find motivating and remind yourself several times a day.
Take a breath and enjoy life!
Go dancing, biking, swimming or go hiking! Vacation is the time to slow down and enjoy the little moments. This time away is important to your wellbeing and mental health.
Staying on track on vacation doesn’t have to mean perfection – it just means you have to strike a balance. It is possible to have a great time without sacrificing fun or sabotaging all that hard work you put in before your trip. Even with these tips, your diet progress may stall on vacation (and that’s ok!). As long as you’re not gaining weight, you’re still on track toward meeting your goals. Relax, enjoy yourself, and focus on making healthy choices when you can.
by admin | Jun 29, 2021 | Health & Wellness
We have certainly been focused on improving our health this year. June is Men’s Health Month and provides a great opportunity to focus on some simple tips that men can follow to shore up their health. These five guidelines will not only assist with a man’s physical health, but also their mental health.
Make Annual Appointments
Men are notoriously the punchline for jokes about not going to the doctor until they are on their death bed. Let’s stop the joking! Annual check-ups ensure you and your doctor are both aware of your health issues. Annual exams and blood tests can look at blood pressure, warning signs of heart disease, obesity, and cholesterol. Staying on top of these health issues through regular doctor’s visits can extend your life and improve your overall health.
Eat a Healthy Diet
A healthy diet does not mean eating just salads. Look at MyPlate.gov to see what a healthy plate should look like for each meal. Cut down on sugar intake, make half your meal fruits and vegetables, and vary up your protein routine. Healthy food choices do more than assist with weight loss, they also decrease your risk for heart disease, diabetes, and stroke.
Know Your Family History
Does your family have a history of cancer? What about heart disease? Men who know their family’s medical history can share this information with their doctor so that they can be better informed about possible issues in the future. Knowing that your family has certain proclivities to disease, allows you to go on the offensive with your health. Write down your medical history and that of your parents and close relatives.
Get Your Sleep
Adults need 7-9 hours of sleep each night. According to the Sleep Foundation, “Sleep allows the brain and body to slow down and engage in processes of recovery, promoting better physical and mental performance the next day and over the long-term.” Men should make sure they get enough sleep each night because poor sleep is also closely related to increased chances of obesity, heart disease, diabetes, and depression. Sleep is an essential part of a healthy lifestyle.
Strengthen Your Relationship Bonds
Connecting with others has been proven to improve your overall health and even extend your life. As we grow older, relationships are harder to build as families are built, jobs change, and interests evolve. We’ve all seen how isolation and social distancing negatively affect our mental health this year. Solid relationships allow you to have accountability with others about struggles you may have, give you a network of support in a health crisis, and even improve your self-esteem. When you have good mental health, your physical health will also be affected. Men must work to create and maintain relationship bonds for the sake of their mental and physical well-being.
The mental and physical health of the men in our lives can easily be improved by following these simple tips. From getting enough sleep to eating a healthy diet, these guidelines are certainly a great way to kick-off a healthy routine in your life.
by admin | Jun 24, 2021 | Human Resources
There are certain issues that have taken center stage in the collective conscious when talking about the workplace, the future of work and how the current workforce is faring under the current conditions. Naturally, as those things enter the collective conscious, researchers find themselves asking what exactly holds true and what can we learn from it?
As usual, my inbox is full of the latest studies and surveys being conducted by HR vendors, researchers and employers of all sizes. In today’s data drop, we’re going to take a closer look at how employees view diversity and inclusion efforts, what challenges they’re facing when it comes to mental health and the impact the gig economy is having.
The D&I Appetite
At this point, there should be little doubt around the importance of D&I or DEI in your organization. It’s been well established the impact it has on the bottom line and employer brands, but if you needed more reassurance, the latest study from Boston Consulting Group should hammer it home.
The study asked questions of more than 200,000 employees across 190 countries and the results shouldn’t come as a surprise to anyone who’s been following sentiments around DEI over the last year. Results included the following:
- More than half (51%) of U.S. respondents said they would exclude a company from their job search if its values and stance on diversity and inclusion (D&I) didn’t match their own beliefs. This number was even higher among respondents 30 years and younger (56%).
- D&I became more important over the last year across all age groups globally. In the U.S., respondents 30 years and younger (72%) were most likely to agree with this statement compared to all U.S. respondents (63%) and all respondents globally (69%).
It’s a notable sentiment following the release of research by diversity platform Headstart as part of its “Discrimination in American Hiring” report. The findings show that 54% of those seeking a new job in the last two years felt they were frequently discriminated against. That number rose to 66% for Black Americans and 83% for those who identify as gender-diverse. Interestingly, however, 30% of respondents who faced recruitment discrimination would consider reapplying for the same company.
Mental Health Struggles
In June of last year, the Centers for Disease Control and Prevention (CDC) released data which showed that 40% of Americans were struggling with mental health. That number hasn’t decreased as the pandemic has continued and the months that followed included a hectic election and numerous other crises.
A more recent report from The Standard, an Oregon based insurance company, showed that 55% of workers surveyed said that a mental health issue had affected them more since the pandemic began. MetLife’s annual Employee Benefits Trends Study backs this up, with 54% saying mental health has been their biggest concern during the pandemic.
This won’t come as a surprise to HR teams that have been working toward developing mental health support tools for their workforces, but it should also be extended to talent teams as they consider their hiring processes.
Among the unemployed, one in five are or have been treated for depression in the last year. Many suffer from sleep loss and high levels of stress that can impact their ability to search and interview for a new job. Long term unemployment can lead to serious health issues such as obesity and other conditions related to stress and inactive lifestyle.
Expanding Gig Economy
Globally the gig economy has seen a boom as layoffs and needs for flexible scheduling have seen more people around the world adopt gig work than ever before. In the U.S., around 40% of Americans are currently working in gig or contract roles.
Job boards are now seeing a stark rise in contract job postings, with Resume-Library noting a 58% increase in the demand for handyman roles month over month. While many think of rideshare drivers and freelancer graphic artists when they think of gig work, the top five gig postings on the site now include the following:
- Handyman +58.3%
- Market Researcher +50%
- Packer +20.3%
- Social Media +4.5%
- Photographer +4.3%
The U.S. is currently the fastest growing freelance market in the world, experiencing a 78% growth in gig positions over the last year, with the UK following behind at 59% and Brazil at 48%.
By David Rice
Originally posted on ThinkHR
by admin | Jun 15, 2021 | Financial Planning
There have been important changes to the Child Tax Credit that will help many families receive advance payments starting this summer. The American Rescue Plan Act (ARPA) of 2021 expands the Child Tax Credit (CTC) for tax year 2021 only.
The expanded credit means:
- The credit amounts will increase for many taxpayers.
- The credit for qualifying children is fully refundable, which means that taxpayers can benefit from the credit even if they don’t have earned income or don’t owe any income taxes.
- The credit will include children who turn age 17 in 2021.
- Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return.
For tax year 2021, families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 at the end of 2021. They will receive $3,600 per qualifying child under age 6 at the end of 2021. Under the prior law, the amount of the CTC was up to $2,000 per qualifying child under the age of 17 at the end of the year.
The increased amounts are reduced (phased out), for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.
Advance payments of the 2021 Child Tax Credit will be made regularly from July through December to eligible taxpayers who have a main home in the United States for more than half the year. The total of the advance payments will be up to 50 percent of the Child Tax Credit. Advance payments will be estimated from information included in eligible taxpayers’ 2020 tax returns (or their 2019 returns if the 2020 returns are not filed and processed yet).
The IRS urges people with children to file their 2020 tax returns as soon as possible to make sure they’re eligible for the appropriate amount of the CTC as well as any other tax credits they’re eligible for, including the Earned Income Tax Credit (EITC). Filing electronically with direct deposit also can speed refunds and future advance CTC payments.
Eligible taxpayers do not need to take any action now other than to file their 2020 tax return if they have not done so.
Eligible taxpayers who do not want to receive advance payment of the 2021 Child Tax Credit will have the opportunity to decline receiving advance payments. Taxpayers will also have the opportunity to update information about changes in their income, filing status or the number of qualifying children. More details on how to take these steps will be announced soon.
The IRS also urges community groups, non-profits, associations, education groups and anyone else with connections to people with children to share this critical information about the CTC. The IRS will be providing additional materials and information that can be easily shared by social media, email and other methods.
The IRS will provide more information about advance payments soon.
Additional information can be found at IRS.gov/childtaxcredit2021
