The child tax credit in Las Vegas

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Hey a lot of I’am riyanewan are wondering what the latest is on this $78 billion deal is this actually going to delay the government shutdown.

What’s in it for that $78 billion child tax credit deal for you well there’s a lot first and foremost if you have not yet applied for the employee retention tax credit.

It might be going away child tax credit Way sooner than expected so basically if you think you’re eligible and you want some free money child tax credit.

You might want to consider applying probably before January 31st now at the moment the IRS has stopped processing these but they’re on a tentative pause.

As they investigate fraud in the employee retention tax credit so point is I don’t know if even at this point you’ll still be able to get in but you probably nearly definitely.

Child tax credit 2024 income limit

Won’t be able to get in after January 31st if this new $78 billion deal goes through so let me just quickly catch you up with the employee retention tax credit since.

Child tax credit 2024 income limit

There are probably many of you who are or business owners here and if you’re not it’s just worth knowing about.

This before we get to talking about the child tax credit in the other updates if you are a business that had payroll in 2020 and 2021 you’re eligible for a tax credit.

If you meet one of three conditions initially the conditions had to do with you showing a decline in income in any part of 2020 itself or the first 3 quarters of 2021.

One however they loosen that uh and so now those two conditions expanded to a third condition that is either 2020 or the first three quarters of 2021.

How does a child tax credit work

They expanded that to basically say or your business was shut down during 2020 or the first three quarters of 2021 which basically kind of made everybody be like.

How does a child tax credit work

I was subject to the shutdown so pretty much every person who has payroll has been getting beat up by companies that are basically calling you.

Up going hey you want to get some free tax credit give us 50% of the tax credit we’ll help you get the tax credit and if you get it you just give us 50%.

As part of us getting that for you because it’s money you didn’t even know you were potentially eligible for right so there are a lot of companies doing that.

It’s not that hard to apply for it I mean quite frankly you could probably just Google the IRS form by typing in employee retention tax credit.

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Congress new child tax credit

The word or letters a the a and the s and then well yeah no kidding surprise surprise you can get the whole IRS forms and guides on exactly.

Congress new child tax credit

How to fill out the form and knock this out but the point is in 2021 this actually had a pretty big number attached to it you were able to get up to 70% of employees qualified wages.

Wegas Up to $28,000 per employee in 2021 which is wild because that means if you paid an employee a qualifying employee.

Let’s see if you paid them $40,000 a year or more you could get 28 grand towards their payroll in 2021 per employee okay that’s a lot of potential money again.

Go to the employee retention tax credit form uh at the IRS directly and you could see the eligibility checklists.

They have you could see the forms for actually filling this out all you have to do is Google uh IRS employee retention tax credit and they have a full breakdown.

Child tax credit 2024 when will it start

For you here on all the eligibility the details so take a look at this if you’re interested in that the point is the $78 billion deal that we’re talking about.

Child tax credit 2024 when will it start

Now will probably kill the employee retention tax credit after January 31st they’re doing that because they think they’ll save about 70 billion and now while they save $78 billion.

Going to pull the usual and they’re going to spend $78 billion yes that’s kind of exactly what they’re trying to do uh the $78 billion deal would enable increasing.

The child tax credit refundability so I want to be really clear about this the child tax credit for 2021 got boosted from $2,000 to $3,000 up to another $600.

If your child was under six right okay so the credit was 2,000 went to 3,000 to 3600 in 20121 that was 2021.

That’s gone that $2,000 was also a doubling of what the child tax credit used to be which was $1,000 Ivanka Trump got credit for kind of doubling.

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Child tax credit 2024 calculator

That child tax credit the point though is that now there’s talk about increasing the refundability of that tax credit it’s basically a way of saying look.

Child tax credit 2024 calculator

If you owe $22,000 in taxes and you have one child and you meet the income thresholds boom you pay zero in taxes but what happens if you owe zero in taxes.

You’re supposed to get that $22,000 tax credit well if it’s non-refundable you don’t get it you lose it it evaporates well this plan would expand the refundability.

That child tax credit now I broke all of these phase outs and the details down because they’re a little hard to follow.

Out on remember just go to you can see all these details uh yourself and then you can do your further research on this so anyway.

The refundability aspect would grow the refundability is expected if this bill passes which it has not passed yet is expected to grow to $1,823 19 and 24 and 20 2025.

Child tax credit monthly payments update

A possible inflation bump of the tax credit itself to $2,100 in 2025 so the refundability portion uh would not only remain at $1600 but also start slowly bumping up.

Child tax credit monthly payments update

So it really helps the lowest of income individuals who are not paying that much in taxes and they’d basically be getting a stimulus check.

Money that they’re not owing in taxes if they meet the income criteria which the income criteria the phase outs over here roughly less than 75k for the full benefit.

If you’re single 112.5 head of household 150 for joint filers uh and uh then that phases out or reduces by $50 of.

A credit for each 1K of come you’re over that so it’s not a hard drop off at 75k single it slowly goes down basically.

You’re down 250 bucks on it if you’re at $80,000 of income so on and so forth so anyway expanding this is coming at the cost of cutting.

Child tax credit stimulus monthly payment schedule

That employee retention tax credit put some more history on here and then some other tax breaks that are expected to come in expanded tax breaks.

Child tax credit stimulus monthly payment schedule

Taiwan basically treating them under uh some more preferential uh tax treaties the expansion of disaster tax relief lowincome housing tax credits and potentially.

Expanding the 179 deductions for machinery and equipment and certain business interest expenses that were limited some of these.

We don’t have all of the details yet but we’re looking for retroactive tax benefits that could hit in 20123 that is I know we’re in 2024 now but it could apply to the 2023.

Tax return so what I always like to do is I like to have like one notepad where I put like reminder for 2023 taxes and then I just like to put little notes down.

So if I’m a business owner I’m like talk to CPA about employee retention credit now you want to do that before January 31st but.

Child tax Credit age limit

Then you’ll also want to look and see how did 179 deductions change some deductions for example if you were like insane and you decided to buy a plane in 2022.

Child tax Credit age limit

You could get a 100% of a deduction on it in 23 that went down to 80% and in 2024 I think that’s down at 60%.

Now I think some of these are going to get bumped back up to 100% so we don’t know all of the details yet because this is just sort of like no taking.

We don’t have the full bill yet uh from from what’s being talked about in the along with potentially better tax benefits for research.

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