Please be advised that refunds are taking longer this year. Click the link for more information regarding the delay in processing:
For families that qualify, the first advance child tax credit payment is slated to arrive automatically on July 15, with monthly checks then going out through the second half of 2021. The other half of your money will come with your tax refund in 2022. You can, however, decide to opt out of the monthly advance child tax credit payment, choosing instead to receive one lump sum -- up tp $3,600 or $3,000 -- when you file your tax return in 2022.
You can opt out of these payments and have several good reasons to push the payment to next year -- for instance, if your income or number of dependents will change during 2021 and you don't want the hassle of extra paperwork. To opt out, you'll have to use an IRS child tax credit portal that should be live by July 1.
We strongly recommend you opt out of the advanced child tax credit, unless you have spoken us regarding your individual tax situation. Taking the advanced child tax credit could cause you to owe money on your 2020 Income Tax filing.
The IRS annouced it will automatically issue refunds for the unemployment tax break. These will start going out in June and continue through the summer. These corrections are being made automatically in a phased approach.
The first phase of adjustments is being made for single taxpayers who had the simplest tax returns, such as those filed by taxpayers who did not claim children or any refundable tax credits.
More complex corrections will begin upon the completion of the first phase and involves couples filing as married filing jointly.
The IRS will issue refunds resulting from this effort by direct deposit for taxpayers who provided bank account information on their 2020 tax return. If valid bank account information is not available, the refund will be mailed as a paper check to the address of record. The IRS will continue to send refunds until all identified tax returns have been reviewed and adjusted.
About 30 days after receiving your refund you’ll receive a letter from the IRS with details about the unemployment adjustment. Save this letter with your tax records.
This adjustment means previously filed returns do not need to be amended for the unemployment exclusion. There may be some situations where an amendment may be needed, such as if the unemployment income exclusion makes you eligible for a credit (ex. Earned Income Credit) or deduction that was not already claimed on your return.
For now, you should not file a federal amendment until further guidance is provided. We will add IRS guidance here as it becomes available.
The third round of Economic Impact Payments was authorized by the American Rescue Plan Act of 2021 as an advance payment of the tax year 2021 Recovery Rebate Credit.
The IRS started sending the third Economic Impact Payments to eligible individuals on March 12, 2021.
We continue to send Economic Impact Payments weekly in 2021 as 2020 tax returns are processed.
Payments will be sent to eligible people for whom the IRS did not have information to send a payment but who recently filed a 2020 tax return.