topic Quick Question about the New Child Tax Credit in Deductions & credits

Quick Question about the New Child Tax Credit

grifindor2 — Tue, 09 Mar 2021 15:42:12 GMT

I called Turbo-Tax and talked with an agent who had no clue about anything. I could have talked with a wall and get the same information that he was telling me.

Anyway, my question is, is the new child tax credit that the senate has passed (and the house needs to pass it as well), is intended to increase the credit towards 2020 ? Meaning, do I need to amend my tax return if it was already filed?

Or is it towards 2021 (this year) and I will benefit it during 2022 when I do my tax return for 2021.

Thanks.

Re: Quick Question about the New Child Tax Credit

DoninGA — Tue, 09 Mar 2021 15:46:07 GMT

The new Child Tax Credit proposed in the legislation is for tax year 2021.

See this website - https://www.kiplinger.com/taxes/602378/senate-passes-3000-child-tax-credit-for-2021

Re: Quick Question about the New Child Tax Credit

Hal_Al — Tue, 09 Mar 2021 15:54:41 GMT

Simple answer: It's towards 2021 and you will benefit during 2022 when you do my tax return for 2021. It is highly unlikely to be part of your 2020 return, either original filing or amended.

For now, it's only a legislative proposal.. There is a provision for advanced monthly payments being made in 2021. The payments will come from the IRS, similar to the stimulus payments. The details of how and when are yet to be worked out, but starting in July has been mentioned.