The American Rescue Plan, signed into law on March 11, 2021, contained $1.9 trillion of relief for taxpayers (Segers, 2021). The new law, with several retroactive 2020 tax return items, passed in the middle of filing season. Tax preparers scrambled to quickly understand how to process the remaining tax returns and how to handle the millions of already filed tax returns. Tax professionals and individuals seem to now have a handle on the changes that were retroactive, but the 2021 expanded Child Tax Credit and its advance payments are still causing much confusion among individual taxpayers. Tax preparers need to be able to explain this credit to their clients.
Freeman, Michelle. 2021. The Expanded Child Tax Credit and Advance Payments: What Your Clients Need to Know. Tennessee CPA Journal. (September/October 2021). 16-19. https://www.tscpa.com/news/journal/51-september-october-2021-tennessee-cpa-journal ISSN: 1080-2940