The IRS will begin making direct deposits of the new extended child tax credit payments today, July 15, through December 15.
The payments are part of the $1.9 trillion American Rescue Plan signed into law by Pres. Joe Biden.
The maximum credit amount has increased to $3,600 per qualifying child under age 6 and $3,000 per qualifying child between ages 6 and 17.
The IRS will pay half of the total credit amount in advance monthly payments of $250 or $300 based on the child's age beginning July 15. Parents can claim the other half on their 2021 tax returns in April 2022.
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The child tax credit is a fully refundable tax credit. But some families may have to pay some of the money back.
Individual wage earners with adjusted gross income (AGI) over $75,000 annually or couples earning over $150,000 annually are not eligible.
The credit will be reduced by $50 for every additional $1,000 of income over those limits.
For example, the $3,000 credit for a child aged 6 to 17 would be phased out completely for individuals earning $95,000 and for couples earning $170,000 and filing jointly.
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You don't have to be employed to receive the child tax credit. Parents who earn less than the minimum income or no income at all can still file to receive the expanded child tax credits. To do so, visit the IRS Child Tax Credit Update website here.
The increased child tax credit ends on December 15, 2021. But Biden will push Congress to extend the payments until 2025. Some Democrats vowed to make the increased child tax credit permanent.
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The New York Times published an exposé on Sunday, alleging that President Donald Trump committed "income tax avoidance" in 2016 and 2017. Trump called the exposé "fake news."
The paper claims Trump paid only $750 in income taxes in those years.
Unlike income tax evasion, income come tax avoidance is totally legal. Millions of Americans pay accountants to help them avoid paying taxes via tax write offs and deductions.
In Trump's case, he took advantage of an exploit in then-President Barack Obama's 2009 stimulus policy that wipes out taxes going back two years. In November 2009, the window was further opened another two years to wipe out taxes going back four years.
"Mr. Trump had paid no income taxes in 2008," according to the National Review. "But the change meant that when he filed his taxes for 2009, he could seek a refund of not just the $13.3 million he had paid in 2007, but also the combined $56.9 million paid in 2005 and 2006..."
This is not the first time the NYT has analyzed Trump's taxes. In 2016, the paper obtained Trump's 1995 tax return from an anonymous source.
The 1995 tax return showed Trump declared a $916 million loss. Tax laws allow such losses to be carried forward for many years -- offsetting taxes owed on future income.
Trump lost so much money in 1990 and 1991 - $250 million - that he didn't have to pay taxes for the next 8 years.
This is the so-called "income tax avoidance" that the Times claims Trump committed.
From 2005-2007 Trump paid a total of $70.1 million in income taxes. Trump actually paid more income tax than Amazon's Jeff Bezos, the richest man in America.
Like most Americans, Trump doesn't file his own taxes. He has a team of corporate accountants who file his taxes for him. Then another team of tax lawyers pore over the documents to make sure all tax laws, income and deductions are reported accurately.
The Times didn't find anything illegal in Trump's tax returns in 1995, 2016 or 2017. They even noted that all "questioners" looking for a smoking gun in Trump's Tax returns will be "unfulfilled".
Ironically, the New York Times paid no income tax last year.
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The Supreme Court on Thursday ruled President Donald Trump must release his income tax reports and financial documents to NY prosecutors investigating hush money payments as part of a criminal investigation.
In a 7-2 vote, the justices upheld a Manhattan District Attorney subpoena for the last 8 years of Trump's tax reports, including his personal and corporate tax returns, according to TheHill.com.
In his decision, Justice John Roberts writes that the court established unanimously that "No citizen, not even the president, is above the common duty of producing evidence." He went on to say that the president is "not absolutely immune" from state criminal subpoenas seeking his private papers.
In an earlier ruling the lower appeals court directed that the case be returned to the district court where the president may raise further constitutional arguments.
It's unclear whether Trump's tax documents will be released prior to the November elections.
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President Donald Trump has ordered the Internal Revenue Service to extend the filing deadline to July 15.
Earlier, the IRS extended the payment deadline to July 15 to lessen the financial impact of the coronavirus outbreak.
Treasury Secretary Steven Mnuchin announced the extension in a tweet on Friday. He previously denied reports that the IRS would extend the filing deadline.
"We are moving Tax Day from April 15 to July 15. All taxpayers and businesses will have this additional time to file and make payments without interest or penalties."
Mnuchin encouraged taxpayers who are due refunds to file early to receive their refund checks more quickly.
President Trump signed a bill that includes sending checks ranging from $1,000 to $4,500 to every American. Mothers with children will also received an extra $500 for each child.
Hard working individual taxpayers who earned over $99,000 in 2018 will not receive a check from the government.
The Trump administration is also considering a blanket suspension of all income tax payments for the rest of the year.
A federal appeals court has ordered President Donald Trump to turn over his tax returns to Congress.
The U.S. Court of Appeals for the District of Columbia Circuit ruled Friday that President Trump's accountants must hand over his tax returns. But Trump could still take the case to the full appeals court or even the Supreme Court.
House Democrats, who are desperate to impeach Trump before the 2020 election, are ecstatic over the appeals order.
"Today's ruling is a fundamental and resounding victory for Congressional oversight, our Constitutional system of checks and balances, and the rule of law," Rep. Elijah Cummings (D-Md.), chairman of the oversight committee, said in a statement.
The House Committee on Oversight and Reform subpoenaed Trump's tax records from Trump's accounts, Mazars USA, in April. The subpoena include documents from 2011 to 2018 that the House wants for investigation into the president's potential conflicts of interest.
House Democrats are also attempting to impeach Trump over a complaint filed by a CIA whistleblower who asked to remain anonymous.
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