11/28/2023 0 Comments Turbotax advance payments received![]() Before 2021, the credit was worth up to 2,000 per eligible child, and 17 year-olds were not eligible for. I was okay with it because they changed me owing 260 on my taxes to only 11 so I expected to pay close to that amount anyway. My point is that this is all a non-trivial exercise since there are potentially many moving parts, and that everyone needs to hold their breath and let the IRS and the tax software vendors work through this. The American Rescue Plan raised the maximum Child Tax Credit in 2021 to 3,600 for qualifying children under the age of 6 and to 3,000 per child for qualifying children ages 6 through 17. If you didn’t receive any advance payments for the Child Tax Credit in 2021, you can get the full Child Tax Credit amount on your return. However, because any self-employed taxpayers who have Marketplace insurance can deduct excess Premium Tax Credit (PTC) as part of the Self-employed health insurance deduction on line 16 of Schedule 1 (1040), this will have to be changed as well if the excess (PTC) is no longer taxable (if it's not taxable, then it can't be deductible, either). Taxpayers should keep this, and any other IRS letters about advance CTC payments, with their tax records. So far, we are given to understand by the IRS that taxpayers should not amend their returns yet, because the IRS is considering automatically refunding these amounts (in a way similar to how they say they will refund the taxes on the first $10,200 of unemployment). To help taxpayers reconcile and receive 2021 CTC, the IRS is sending Letter 6419, Advance Child Tax Credit Reconciliation from late December 2021 through January 2022. The IRS determined who received 2021 advance Child Tax Credit payments based on the information on your 2020 tax return, or your 2019 return if the IRS hadn’t processed your 2020 return. ![]() Pay for TurboTax out of your federal refund: Individual taxes. The amount that you receive will be reconciled to the amount that you are eligible for when you prepare your 2021 tax return in 2022. These payments are an advance of your 2021 Child Tax Credit. Just because the law was passed doesn't meant that TurboTax and other vendors have sufficient information on how to code this. Eligible families will receive advance payments, either by direct deposit or check. On the Form IL-1040 or IL-1040-PTR, enter zero "0" for Line 1 and follow the Instructions for the form.I imagine that TurboTax is waiting for guidance from the IRS on how they want taxpayers and tax preparation companies to handle the repayment of the Premium Tax Credit. Note: If you were not required to file a 2021 federal Form 1040 or 1040-SR, you may still file a 2021 Form IL-1040 or Form IL-1040-PTR to request the rebates.Only the individual income tax rebate – You must file Form IL-1040, including Schedule IL-E/EIC, Illinois Exemption and Earned Income Credit, to report any eligible dependents, on or before October 17, 2022.Only the property tax rebate – You must complete and submit Form IL-1040-PTR, Property Tax Rebate Form, on or before October 17, 2022.Both the property tax and individual income tax rebates – You must file Form IL-1040, including Schedule ICR, Illinois Credits, and Schedule IL-E/EIC, Illinois Exemption and Earned Income Credit, to report any eligible dependents, on or before October 17, 2022.If you have not already filed Form IL-10, then in order to receive:.Submit Form IL-1040-PTR electronically through MyTax Illinois or submit a paper Form IL-1040-PTR. Normally, the IRS will calculate the payment amount based on your 2020 tax return. If you filed your 2021 Form IL-1040 but did not include your Schedule ICR, then to request the property tax rebate, you must complete and submit on or before October 17, 2022, Form IL-1040-PTR, Property Tax Rebate Form. Most families do not need to do anything to get their advance payment. ![]() If you did not receive a refund, then your rebate will be sent by paper check to the address on your return. Your rebates will be sent automatically in the method that your original income tax refund was sent. For taxpayers that have filed their 2021 Form IL-1040 and Schedule ICR, Illinois Credits, nothing additional is needed for the property tax rebate and the individual income tax rebate.
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