The recently enacted American Rescue Plan includes an expanded refundable Child Tax Credit (CTC) for the 2021 tax year. Many taxpayers will receive part of their credit in 2021 before filing their 2021 tax return. This will take the form of a monthly payment of up to $300 per month for each child under age 6, and up to $250 per month for each child age 6 and above. These monthly payments will be made to approximately 39 million households, which covers about 88 percent of all children in the U.S.
The payments will be made automatically and are scheduled to begin on July 15 and continue through December. The payments will be made through direct deposit, paper check or debit cards.
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 phased out for households with 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.
For additional information, please contact Gray, Gray & Gray at (781) 407-0300.
Every time you buy something overseas, you might be paying a tax that you can reclaim. If your company does a great deal of international business travel, here’s how you can pocket a bundle by filing for Value Added Tax refunds.
The economy remains in a state of uncertainty which means many companies are looking for ways to increase their performance and revenue beyond traditional internal growth methods. During times of economic distress, studies have shown that many companies have turned to merger and acquisition strategies as they provide high, long-term shareholder returns. A market of low prices can create an attractive arena for companies with steady financial positions. Continue reading →
Companies set up a 401(k) plan for their employees for many reasons. As a vehicle that can help supplement social security income for their employees’ retirement years, a 401(k) is an important recruiting and retention tool and an excellent alternative to a traditional, company-funded pension plan. Plus, it can be rewarding to know that you are offering this support to your hard working employees. Continue reading →
By now many of you have heard that the IRS issued lengthy and complex rules last December regarding whether an expenditure for tangible property, including real estate, is deductible as a repair or must be capitalized. The new rules will affect many businesses including many of our clients. We at Gray, Gray & Gray are fully conversant with these new rules. The IRS recently held public meetings regarding the rules at which many issues and suggestions were made. We do not know the results of these meetings. Businesses have until December 31, 2013 to make the changes required by the new rules. Continue reading →
Welcome to GG&G’s Blog, GG&G News. We will consistently use this platform to share relevant and important news and updates for our readers to ensure that they are kept up-to-date on all tax related issues which will help them stay successful and in compliance. Thanks for reading and please sign up on the link to have all updates to this blog sent straight to your email.