Articles Tagged with child tax credit

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The American Rescue Plan Act of 2021 (hereinafter “Plan”), also called the COVID-19 Stimulus Package, was passed by Congress and officially signed into law by President Joe Biden on March 11, 2021.  The Plan seeks to aid the economy in recovering from the effects of the COVID-19 pandemic. One significant change the Plan provides for is a new federal enhanced child tax credit beginning July 15, 2021. Statistics show that the credit will go to roughly 39 million households with about 65 million children. For the 2021 tax year, the enhanced maximum child tax credit is $3,600 for children younger than age six (6) and $3,000 for children between the ages of six (6) and seventeen (17).

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Spring in Greensboro brings certain things. Pollen, unexpected rain showers, warmer weather, and taxes. The American Rescue Plan was enacted as part of ongoing Covid-19 relief. This plan provides an additional relief check, subject to income-cap requirements based on either 2019 or 2020 tax returns (most recent filed). The Plan also provides for an advance on half of a potential child tax credit for next year. These payments may both be at issue in a divorce case. Having tax return money in contention between divorcing spouses is hardly a novel concept. But due to the legislation providing pandemic relief, many spouses must find creative ways to divide relief funds when they were based on joint filings. The child credit advance presents a new wrinkle in divorce and custody cases. Continue reading →