Will the Stimulus Checks Affect My 2021 Taxes?
The stimulus checks have been nice extra money for many Americans. People have been using it to pay rent, supplement income levels, and provide food for their families. Of course, it’s excellent for citizens to have the extra set of income, but a Georgia tax attorney is here to tell you to be weary for the upcoming tax season.
Although many Americans are not worrying about how the stimulus checks can affect their 2021 tax return. So, if you don’t want to experience any confusion for the upcoming tax season, read what a tax attorney in Atlanta has to say about it.
Is There Going to Be a Fourth Stimulus Check?
At the moment, there is no fourth stimulus check for Americans, although it is subject to change. During the 2021 tax return season, many people will struggle to do their taxes due to the stimulus checks received in 2020. If you would like to avoid any confusion for the 2022 tax season, then contact a Georgia tax attorney to help you prepare for the season.
Some people were subject to audits for the first time due to stimulus checks received in 2020. Did you have to experience a tax audit last tax season due to the stimulus checks? If so, see how Atlanta tax attorneys can help prepare you for another audit for the 2021 tax returns.
If So, How Will It Affect the 2021 Tax Return?
The Atlanta tax law services were able to help people understand the effects of the stimulus checks in the 2021 tax season. Although luckily, many were not affected by the stimulus checks on their tax refund. It is because the stimulus checks were not considered taxable income and were not an advanced tax refund.
Due to the progressive tax refund nature of the child tax credit monthly payment, many Americans may have to repay it. If you’re unsure if the child tax credits will affect your 2021 tax return, then let a tax attorney in Atlanta help you during the process.
What About the Child Tax Credit Payment?
The monthly payments were able to help many low-income families during their troubling times, but the approach may not suit everyone for the tax season. In spite of the consistent payments, many families may now rely on the end-of-year Child Tax Credit to reduce their tax bills.
When filing tax returns in 2021, a family with two children may receive up to $6,000 in tax credits. This lowers their tax bill or even increases their refund. Even if you’ve already received a payment from this program, you still have time to opt-out. You can quickly return to the old method if you would like.
The monthly payments are essentially just a way to advance the tax credit that will be available when you file in 2022, though the money is currently available. As such, payment eligibility depends on your adjusted gross income for 2021.
Your income may increase significantly before the end of 2021, making you ineligible for the Child Tax Credit. A tax attorney in Atlanta can help you understand how the credit will affect your tax return and the actions you will need to take in filing your returns.
Do You Need Georgia Tax Attorneys to Help with Your 2021 Tax Return?
Often, the tax season is tricky as laws frequently change, and due to the child tax credit, more changes are expected. If you do not want to deal with the headache of filing your tax return alone, then seek legal guidance from tax attorneys in Atlanta.
Contact the Law Office of Max Benkel today!
