You are among millions who have now been affected by a mid-tax season change in the tax law. Patience will be necessary.
TurboTax will update the software for the unemployment but there is no timeline yet.
It can take weeks to several months or more for the changes to be made to tax software. First the IRS has to change its forms. The tax software has to be changed; the IRS has to test and approve of the software. Do not expect changes in the software to happen quickly. TurboTax may have more information in the near future AFTER the bill is signed into law, and some more details emerge about how Congress and the IRS will implement the changes.
That CTC increase is not for 2020; it is for 2021. Your 2020 return does not have to be amended for it. More information will be available soon; the details of how it will be implemented have not yet been clarified fully. There may be monthly payments going out beginning in July 2021, with some of the CTC still left as a refundable credit on your 2021 tax return next year.
CTC how will that effect our filing. Our son will be 17 most of the year he will turn 18 Sept 2021. Will we still be eligible for the child tax credit 2021...
No. The child tax credit (CTC) is still for children under 17 years of age. The IRS will use birth dates to make determination. Here are the rules for the expanded CTC.
Expanded Child Tax Credit
Starting in tax year 2021, the Plan increases the Child Tax Credit from $2,000 to:
It also makes the credit fully refundable, meaning you’ll be eligible to get it even if you don’t owe taxes.
Starting in July, payments for the Credit will be sent in advance so you won’t have to wait to file your 2021 taxes to receive that amount.
You don’t have to do anything to get these payments. The IRS will likely determine eligibility based on your most recent tax filing.
Continue to check the following links for all of the most recent updates.
What I'm trying to figure out is my son will be 17 when the advance payments start in July. However, he will turn 18 in September. Will he still qualify for CTC. If not all atleast a portion?? How does that work...
Yes, your son may qualify the child tax credit as long as he qualifies as your dependent on your income tax return. President Biden signed the American Rescue Plan Act of 2021 (the "American Rescue Plan"). The IRS guidelines on the advance child tax credit payments will be available soon. Click here, for more information.
Yes he is a full time dependent hes only in the 11th grade but he will turn 18 in September of 2021 that's why I'm confused, as to will he qualify on our taxes so that we receive the CTC. This year 2020 he did not we could only claim him as a dependent $500.00😓 even though our income was down it didnt matter...not fair!!!
Unfortunately, he is not going to qualify you for the Child Tax Credit in 2020 or 2021. Qualifying children have to be 16 or younger as of Dec 31. Tax-year 2019 was the last year he qualified for the higher Child Tax Credit. Since he was 17 at the end of 2020, he only qualifies you for the $500 Other Dependent Credit. However, you will receive the $1400 stimulus payment for him. The first and second rounds of checks did not include payments for children 17 and over. The 3rd round does include these older dependents. @Reareahar
Thank you that's what I thought we got left out. 17 is still a child this is not fair..
I already filed my taxes and my husband had unemployment that we claimed. Will I have to file an amended claim once the software is updated? And will I have to pay again to file the amended return?
The IRS has not issued guidance on this yet, you may have to amend your return but it is possible the IRS will simply refund the associated tax, but no one knows for sure about that yet. If you have to amend your return, there is no charge to do that in TurboTax.