Taxes

Sample Advanced CTC Check

Should you Opt Out of the Monthly Advance Child Tax Credit Payments?

With the monthly Advance Child Tax Credit Payments starting to be sent out in mid-July, we’ve received several inquiries from clients as to whether or not they should opt out of these payments (to avoid potentially having to pay it back when they file their 2021 returns). As such, I thought it would be helpful to provide an overview of how it works, how to calculate your 2021 amount, and how to decide if you should opt out of the monthly advanced payments.   By Laurence Schiffman, CFP® September 11, 2021   Estimated Read Time:  12-14 minutes If you don’t care about the details, scroll to the...

Hand Sanitizer and Masks are Tax-Deductible (and HSA eligible)

Last week the IRS announced that amounts paid for Personal Protective Equipment (PPE), which includes masks, hand sanitizer, and sanitizing wipes are tax-deductible medical expenses if the primary purpose for purchasing them was to help prevent the spread of COVID-19. They also made this ruling retroactive to January 1, 2020. Unfortunately, in order to qualify for the deduction for medical expenses you need to itemize your deductions and only the portion of your medical expenses above 7.5% of your AGI is tax-deductible so very few people will actually be able to claim those deductions. Don’t fret though because there’s a twist to...