2021 Tax Updates
Currently this is only for 2021, however it may continue to future tax years.
If your adjusted gross income (line 11 of your 2020 tax return) was under $400,000 Married filing jointly or $200,000 for Single or Head of Household,
you received a tax credit of $2,000 per child up to age 17.
For 2021, if your adjusted gross income is less than the following amounts:
- $150,000 Married Filing Jointly
- 112,500 Head of Household
- $75,000 Single or Married filing separately
You will get a tax credit of – $3,600 for a child 5 or younger or $3,000 for child age 6-17
The US legislature has decided to pay you ½ of this credit in advance on a monthly basis starting July 15, 2021, because of COVID.
If you decide that you do not want this paid to you until your tax return is done in early 2022 – then you have the option to opt out of the advance payment.
You will need to set up an account on irs.gov to make adjustments or execute the opt-out option.
The link to opt out of the advanced payments is on the IRS website:
Other information such as adding children adopted or born in 2021 are available on this IRS website link:
Please call our office with any questions.