Many people are asking what the advance child tax credit payments that start in July will do to their 2021 taxes. The short answer is, it could reduce your refund. Let’s say you have 1 kid. Normally the child tax credit is $2,000. The “enhanced” credit for 2021 is now $3,000 (if the kid is […]
With a Form 8332, the non-custodial parent can claim the dependency exemption for the child and also claim the child tax credit.
Answer: this discussion goes beyond sole proprietors, and the short answer is “maybe.”
The “”Additional Child Tax Credit” is the portion of the child tax credit that is fully refundable regardless of a taxpayer’s taxable income.