News

IRS - COVID TAX TIP

The IRS would like to offer the following messages:

Identify Theft Involving Unemployment benefits

Key Messages Identity Theft

IRS Issue Number - COVID Tax Tip 2021-46 

IRS to recalculate taxes on Unemployment benefits

     Anyone who has filed their 2020 income taxes, but believes they may be due a refund due to the recent changes in taxable income for unemployment benefits will not need to amend their filing.  Please review the messages linked above for further details.


The expanded Advanced Child Tax Credit means:

  • The credit amounts will increase for many
  • 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
  • The credit will include children who turn age 17 in
  • 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.

 

The Advance Payments:

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. Taxpayers can opt out of receiving the Advanced Child Tax Credit Payments to receive it at the end of the year when they file their tax returns. Below is the link to opt out of the Advanced Child Tax Credit payments that begin in July.  The portal is now live: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

 

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.

 

Available through IRS.gov, the new Non-filer Sign-up Tool is for people who did not file an income tax return for 2019 or 2020.  The tool enables them to quickly provide required information about themselves and their qualifying children age 17 and under. Users of the tool can also choose to enter direct deposit bank information so the IRS can deposit the payments directly into their checking or savings account.

 

Eligible taxpayers do not need to take any action now other than to file their 2020 tax return if they have not done so. If they need help filing, our VITA partners are opening special day/hours and may be able to assist if you’re their income $56,000 or less, they must make an appointment:

                            

VITA Sites that may be able to assist you with free tax assistance

Address

Friday, June 25

Saturday, June 26

Friday July 9

Saturday July 10

Hours

Community Care Alliance

800 Clinton Street, Woonsocket, RI 02895

Yes

No

Yes

No

call 401-235-7187 for appointment (2pm – 4pm BY APPOINTMENT ONLY )

Center for Southeast Asians 

270 Elmwood Ave, Providence, RI 02907

Yes

No

Yes

No

call 401-274-8811 for appointment (10am – 3pm BY APPOINTMENT ONLY)

Connecting for Children and Families

46 Hope street, Woonsocket, RI 02895

No

No

Yes

No

call 401-766-3384 for appointment (12pm-3pm BY APPOINTMENT ONLY)

 

© 2019 Town of Little Compton, RI 40 Commons, PO Box 226, Little Compton, RI 02837               

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