Advertise on podcast: Duke Loves Taxes

Five states are sending out stimulus check + Child Tax Credit + Unemployment

Talking child tax credit, refunds and more!

Just because you qualify for the monthly child tax credit does not mean you should take it!

Listen to Duke answer Child Tax Credit questions live

The IRS has started sending out letters to more than 36 million people that may qualify for the new child tax credit. Please read and do not throw it away. Families who are eligible for the monthly payments will receive a second letter, that will estimate their monthly payment amount. Monthly Child Tax Credit Payments Dates will be paid on: July 15, August 13, September 15, October 15, November 15, and December 15 The IRS will also be launching a portal this summer where you will be able to: Opt-out monthly payments Update direct deposit information Check the status of payment • Update income • Change filing status • Change number of qualifying kids • and more The IRS will also be launching an interactive Child Tax Credit eligibility tool to help you determine if you qualify for the monthly payments

Today the IRS announced that they are on time with the child tax credit payments starting on July 15th More than 30M household will start receiving monthly payments without having to take any action It will be $300 PER kid age 0-5 $250 PER kid age 6-17 You will receive the money on the 15th of each month unless the 15th falls on a weekend or holiday In most cases, you will not have to pay back the monthly payments In most cases you will not see are reduction in your refund next year Congress wants you to take the monthly because the primary objective is to reduce child poverty by 50% in 2021 So not taking the monthly payments when you qualify for them defeats the whole purpose

New report shows that the stimulus check provided a: • 42% decline in food shortage • 45% decline in difficulty paying bills • 20% decline in anxiety & depression So this raises the question, will there be a fourth stimulus check? Congress has talked about possibly providing a fourth stimulus check in the upcoming infrastructure package, but so far it has not made any progress Now more than 2 million people have signed a petition asking for monthly $2,000 stimulus check But many people in Congress and at least 25 states say that all this free money encourages people to stay home rather than go get a job. Many Phase I Unemployment refunds will start hitting bank accounts tomorrow The IRS is expected to release more information this week about unemployment refunds

On Feb 12, 2021 tax season started, so this is when the IRS begin accepting tax returnsTo use an example let’s say that your only income in 2020 was from unemployment and you received $10,200Let’s also assume that you are in the 10% tax bracket. This means you paid $1,020 in taxes.Then on March 11th, the IRS said he buddy you don’t have to pay taxes on the first $10,200 of your unemployment benefitsBut your like dude I already paid taxes on the first $10,200 of unemployment benefitsSo the IRS is saying that they will issue you a refund for the amount you paid, in most cases you will not have to amend your tax returnThe IRS will issue the unemployment refunds in phases, Phase I will start receiving their unemployment refund on June 3rd 2021Phase I includes those that are single, claim no kids, and claim no refundable tax credits such as the additional child tax credit and the earned income tax creditAs more phases are announced I promise to update you and I will more than likely post it on twitter first then IG: so follow me there if you are the type of person

The IRS announced 2 weeks ago that Phase I of the unemployment refunds will start being issued But literally, no one in Phase I has received their unemployment refund Phase I include single individuals with no kids and claim no refundable tax credits this includes credits like the additional child tax credit and Earned Income Tax Credit The IRS is saying that you should receive your unemployment refund by the end of summer which September 22, 2021 So keep your hopes up

If you go to the bank and deposit more than $10,000 in cash, your bank has to report the deposit to the IRS by filing form 8300Why am I telling you this?Because today the IRS announced that they want the same rule to apply to cryptocurrency transfersThinking about just transferring $9,999?That’s called “structuring” it’s also illegal and you will get caughtUgh, why are they doing this?Because Biden needs a way to fund his American Families Plan which will give parents monthly checks, and provide free community college. To do this he wants to after cryptocurrency investors and tax cheats to make sure they paying their fair share of taxes

The 2020 child tax credit can increase your refund up to $1,400 for each kid that's age 0-16The new 2021 child tax credit can increase your refund by:$3,600 for each kid age 0-5$3,000 for each kid age 6-17Instead of waiting to file your tax return to receive the money, the IRS will front you 50% in monthly payments from July to December. Monthly Payment Amounts:$300/mo for each kid age 0-5$250/mo for each kid age 6-17So if you have one kid that's age two and another kid that's age 16, you will receive $550/mo. The monthly payment you will receive is based on your kid's age as of 12/31/2021.So if your kid turns 6 in 2021, you will receive $250/mo. If your kid turns 18 in 2021, you will receive nothing. Now, remember that the IRS is only fronting you half. The other half you will get when you file your 2021 tax return in 2022.If you do not want the monthly payments, you can opt out through an IRS portal that is expected to be released in June of 2021.With the new child tax credit, you can choose to have one large payment in 2022 or several small ones through 2021 and the other half in 2022.

CDC says fully vaccinated people don’t need to wear face masks indoors or outdoors in most settingsThey will still need to wear masks on airplanes, buses, trains, and other public transportationIf a business still requires you to wear a mask you will have to still wear a maskPeople will be considered fully vaccinated 2 weeks after receiving their second vaccination shotHow will they know who’s vaccinated and who’s not?I am not quite sure, yet but Vaccination certificates, apps, and color-coded masks are some ideas being talked aboutThe purpose of the CDC announcement is to encourage more people to get vaccinated