NEW IRS Portal for $3600 Child Tax Credit / $8,000 Dependent Credit

hey everyone me kevin here if your

income is less than 200 000

as a single person or head of household

or your income is less than 400 000

as someone with a married filing jointly

tax return

and you have children you want to pay

attention to this video because you've

got some money

coming your way for the tax year of

2021.

this money is going to get paid out to

you over the next six months

starting in july starting july 15th and

the rest of the other six months will

get paid out to you when you file your

taxes

for 2021 next spring so here's how this

works

there is a child tax credit

and there's some important things to

know that if you do not file a tax

return

there's a new form that you want to fill

out so that you can make sure you get

your credit

and if you do file a tax return but you

want to opt out from these payments

there's also something that you have to

do i'll talk about why you might want to

opt out but first

let's give you a quick breakdown as to

what the heck this even is so let's jump

on over

to the ipad here i threw down some

sketches here and i want to make this as

simple as possible so here's the thing

this right now the advanced child tax

credit payments only apply to the

2020 21 i'm sorry

2021 tax return so 2021 tax return

uh only there is talk that congress and

the biden administration

will try to get congress to extend this

for up to a total of five years

right now that is just talk it is just

rumor

we know how congress works very very

slowly so right now this only applies to

the 2021 tax here

presently you qualify with your 2019

tax return income or your 2020 tax

return income

or if you are a non-filer you need to

use the non-filers tool which i'll show

you in just a moment

you also need to have children to

qualify

for the money here's how much money you

get if you have children between

zero and five years old you'll get a

total

credit of 3 600

for the 2021 tax year if you do

nothing you will automatically get 300

per month as long as your child has a

valid social security number and they're

between zero

and five years old if you have a child

between

6 and 17 years old you'll automatically

get 250

per month for the next six months and

you'll get the rest when you file your

taxes

for the 2021 tax year which will be the

spring of 2022

that's a total of three thousand dollars

so you get a total of three thousand

dollars

for children between six and seventeen

you get a total of thirty six hundred

dollars for each child between zero and

five

there's no limit to the number of

children at least that i'm aware of as

long as they have valid social security

numbers

they qualify now uh if you uh you do

need to have

some income to qualify you need to

report at least

2500 of income and for some low income

individuals

this tax credit will actually be

refundable which means let's say you had

2500

of income but you got a 3 600 credit

coming your way

you could potentially get that full

credit but there are some income

criteria for that but low income

individuals for low

income individuals this tax credit

should be refundable which means you

would still get that credit

there are phase-outs for this if you are

a single filer with an income of less

than 75 000

which is the adjusted gross income line

on your 1040 which is your tax return

as long as that number is less than 75

thousand dollars you qualify for the

full amount

thereafter it goes down by 50 for every

1 000

of extra income and if households begin

their phase out at

112 500 and for

couples filing jointly the phase out is

150

000 if you've already filed your 2019

tax returns your 2020 tax returns and

you've already gotten your stimulus

checks

the automatically direct deposited to

you you shouldn't have to do anything

like you should literally do nothing and

you should automatically start seeing

300 a month for child zero to five two

hundred fifty dollars for children six

to seventeen

if you didn't get direct deposit you

gotta check you should get a

check so if you got your stimulus check

you're good

you should automatically get this money

if you had complications with your

stimulus check you want to opt out or

you are a

non-filer here's what you should

consider doing

first if you should file a tax return

for 2019 or 2020 and you have not yet

you should consider filing your tax

return you can easily do this by going

to irs.gov

and for many individuals specifically

under certain

income thresholds you could go to

irs.gov always make sure you're on

official.gov website

you want to be careful about anything

that's not.gov so always navigate to

the.gov websites

and what you want to do is you want to

file your taxes for free

and so you could file your taxes for

free based on the income if your

income's under seventy two thousand

dollars you can file for free

if it's above seventy two thousand

dollars you use these uh fillable forms

over here

uh now regarding the child tax credit

again irs.gov you can go over here to

get answers on the child tax credit

this is a very important form because i

want you to see that you can go to

irs.gov

answers on the advanced child tax credit

and then you will see this form

you can also and i made a totally free

redirect you don't have to use this but

if you go to meetkevin.com or

medkkevin.com

advance i get nothing from that it just

redirects you to that

but honestly i'd rather you just go to

irs.gov and navigate to it yourself

or you could go to meetkevin.com advance

it's the same thing

so this is where you're going to get

some information about the requirements

for this again you should

automatically start receiving this

information especially if you got the

stimulus checks

if you do not want the advanced payments

because you don't want these credits on

a monthly basis

and you would rather deal with this deal

with getting these credits

uh in your 2021 tax return which you'll

file in the spring of 202

2022 then you can unenroll from the

advanced payments

here by clicking this button again

irs.gov

advanced child tax credit on enroll now

if you have

questions realize as well there is a q a

section here and there are plenty of

resources here

such as updating your child tax

information what if you had a child born

or your income

changed or you need to change your

mailing address or information like this

the answers here are very simple the irs

will provide a child tax credit update

portal before the first payments begin

now right now

that payment portal or that update

portal is available

but it's only available for unenrolling

so for example here is the update portal

child tax credit

update portal right now it appears to

only be available for

unenrolling from the advanced payments

but this portal will

update in the future with the option for

you to update children's information so

if you have a child that was born

you want to add their social security

number you want to change address or

something like that

that portal is not available yet for

updating your information

we also still have three weeks today is

june 23rd so you'll just want to check

back to this particular portal you can

find this pretty quickly

what i just recommend doing is type into

google irs and then type in

child tax credit update portal

you'll find it's the first link irs.gov

which should be the first thing

child tax credit update portal and again

right now

you could use this tool to view your

eligibility view your advanced payments

unenroll from getting advanced payments

and in the future you'll be able to

change your address or add children but

this portal is not available yet

for adding children it did just update

for unenrolling from advanced payments

so you have to stay tuned and pay

attention to this particular portal here

so that when this updates you can

provide your updated information

if you need to update your information

now how is this different

from the dependent care credit very

important

so here's the thing we're going to go

back to this ipad here so

on the left side we have the child tax

credit

this again has to do with the thirty six

hundred dollars per month

i'm sorry thirty six hundred dollars

total or three hundred dollars per month

for children zero to five

or three thousand dollars total uh or

two hundred fifty dollars per month

four six to 17 again you're gonna get

half per month

and the other half you claim when you

file your taxes now separately

there is a dependent care credit

so if you spend money on child care uh

babysitting

that's provide or or care provided by a

licensed dependent care center

the cost to have a cook a housekeeper a

maid a cleaning person

who helps care for a dependent or child

day camp a summer camp

after school costs related to even

pre-like before school not not preschool

but you know there's after-school care

and there's before school care

costs related to nursing or in-home

support services

home care for a disabled dependent

whatever

these related expenses that are

specific to care for a child or an adult

dependent that are different from

schooling and tutoring

uh or you know like overnight summer

camps those things are different

things directly related to dependent

care if you spend up to eight thousand

dollars

on dependent care you can get a

50 tax credit for that in the year 2021

that means you could get up to four

thousand dollars of a tax credit for

one dependent and the income phase out

starts at 125 000

if you have two or more dependents you

can claim up to

sixteen thousand dollars in expenses

which would earn you a tax credit of

eight

thousand dollars so that is a very

important difference to remember that

the

dependent care credits are different

from the child

tax credit and you can have both of

these

so hopefully this gives you some help in

breaking down these two different ways

to make sure

you're getting all of the money that you

are eligible for

in the united states in 2021 especially

if you have children

or dependents thank you so much for

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