Duke Loves Taxes: Recent Episodes
Duke Alexander Moore
Just because you qualify for the monthly child tax credit does not mean you should take it!
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 returns
To use an example let’s say that your only income in 2020 was from unemployment and you received $10,200
Let’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 benefits
But your like dude I already paid taxes on the first $10,200 of unemployment benefits
So 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 return
The IRS will issue the unemployment refunds in phases, Phase I will start receiving their unemployment refund on June 3rd 2021
Phase 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 credit
As 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 8300
Why am I telling you this?
Because today the IRS announced that they want the same rule to apply to cryptocurrency transfers
Thinking about just transferring $9,999?
That’s called “structuring” it’s also illegal and you will get caught
Ugh, 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 0-16
The new 2021 child tax credit can increase your refund by:
- $3,600 for each kid age 0-5
- $3,000 for each kid age 6-17
Instead 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 6-17
So 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 settings
They will still need to wear masks on airplanes, buses, trains, and other public transportation
If a business still requires you to wear a mask you will have to still wear a mask
People will be considered fully vaccinated 2 weeks after receiving their second vaccination shot
How 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 about
The purpose of the CDC announcement is to encourage more people to get vaccinated
The White House just announced a partnership with Uber and Lyft to offer free rides to vaccination sites until July 4th.
Lyft said they will be giving out a "ride code" by May 24th.
The goal is to have 70% of the population vaccinated.
There are now 8 states rejecting the extra $300 payment for the unemployment
Alabama, Arkansas, Iowa, Mississippi, Missouri, Montana, South Carolina, and Tennessee.
Georgia might be next.
They are saying that the money encourages people to stay home rather than get a job
The other side is saying that ain't true
The main reason why people are not returning to work is that jobs refuse to pay a fair wage
So I did some research
And the U.S. national average hourly wage for someone who works in food or as a cashier is $11.80 or $1,888/mo.
So in your opinion do you think it’s because of unemployment or unfair wages why people are not returning to work?
Gov. Newsom just announced a $75.7B budget surplus
With this extra money, they are planning to send two-thirds of their residents ANOTHER $600 stimulus check
They also are planning to double rent relief with the goal of getting 100% of all back rent paid
They also going to pay off people utility bills, water bills, gas and electricity bills
If passed this will be the biggest state tax rebate in US history.
California said they are able to do all of this because taxes paid by rich Californians who generally did well during the pandemic
Today the IRS announced that some people may have to amend their tax returns to receive their full unemployment refund
You see when you make a certain amount of money on your tax return, you are not allowed to claim certain tax credits such as the Earned Income Tax Credit
But let’s say your income drops by $10,200 and all of sudden it makes you eligible to claim these credits
The IRS says you are going to have to amend your tax return to receive these credits
The IRS is recommending that you use the EITC Assistant tool to see if you qualify
The IRS also announced that today they started sending out a fourth batch of the 3rd stimulus checks mainly to those on SSI and SSDI
Today the IRS also announced that they will be sending out a firth batch of the 3rd round of the stimulus checks on April 14, mainly to those that receive VA benefits
If you still not received your refund, the IRS said you could be waiting till the summer
If you were self-employed on or before Feb. 15 2020. I strongly advise you to apply for the PP
Experts are saying that Americans only need two more $1,400 stimulus checks, not monthly. Experts are also reporting that the U.S. economy is starting to bounce back. 916,000 jobs were added in March. The IRS announced that they are not taxing the first $10,200 of unemployment benefits But there were 13 states that still will tax unemployment benefits Here are the States Colorado, Georgia, Hawaii, Idaho, Kentucky, Massachusetts, Minnesota, Mississippi, North Carolina, New York, Rhode Island, South Carolina and West Virginia.
Biden is now considering canceling up to $50,000 in student loans
Biden does not know if he can just legally snap his fingers and wipe away student loans
There’s a lot of laws and laws can get confusing
So Biden asked the Big Boss in the Education Department Miguel Cardona, to prepare a memo for him outlining what he can and cannot legally cancel
Once Biden receives the memo he announced that he will then make a decision
The memo is expected to reach Biden in the next couple of weeks
Blue is begging Biden to include monthly stimulus check in his next stimulus package
Well they aren’t really begging but they did they send Biden a letter nicely asking
The support for monthly stimulus checks is growing in the Senate
Today the IRS announced that they will start issuing unemployment refunds in May
If you were self-employed on or before Feb. 15 2020 I strongly recommend you apply for the PPP
The deadline to apply is May 31st