Rossman Tax Service

IRS continues to feel the effects of COVID-19 We have been notified by the Internal Revenue Service that COVID-19 continues to cause service delays. The IRS is delayed in processing tax returns, refunds and correspondence. Additionally, along with processing 2020 income tax returns the IRS is still processing 2019 tax returns. We understand that many of you are waiting for your refunds. Rossman Tax Service will continue to obtain updates from the IRS and will pass along any pertinent information to you as it becomes available to us.

ADVANCE CHILD TAX CREDIT PAYMENTS IN 2021 The Internal Revenue Service (IRS) recently announced automatic monthly child tax credits will be paid to qualify families starting July 15th with subsequent monthly payments till the end of 2021. The monthly child tax credit payments represent only half the year’s credit. The remaining amount of credit can be claimed when filing your 2021 income tax return. 2021 CHILD TAX CREDIT IS DETERMINED BY THE AGE OF YOUR QUALIFYING CHILD... AGE 5 AND YOUNGER - Beginning July 15th, the IRS will pay up to $300 per month for each qualifying child in this age group till the end of 2021 which equals $1,800 (half of the credit). The remaining $1,800 (second half) will be claimed when filing your 2021 Income Tax Return. AGES 6 TO 17 - Beginning July 15th, the IRS will pay up to $250 per month for each qualifying child in this age group till the end of 2021 which equals $1,500 (half of the credit). The remaining $1,500 (second half) will be claimed when filing your 2021 Income Tax Return. AGE 18 - $500 one-time check in 2022. AGE 19 TO 24, FULL-TIME COLLEGE STUDENTS - $500 one-time check in 2022. The maximum credit is available to taxpayers with adjusted gross income of: $75,000 or less with a filing status of single $112,500 or less with a filing status of head of household $150,000 or less for filing status of married filing jointly For each $1,000 of income above these thresholds, the total credit is reduced by $50 till the credit reaches zero. ** It is very important to keep precise records of each payment you receive and supply them to us when we prepare your 2021 income tax return. Incorrect or missing information may delay the processing of your income tax return. **

As summer 2021 rounds the corner, we will continue to keep a pulse on Federal and State governments regarding potential changes to the tax law. Additionally, for any of our clients who received a PPP Loan, it is time to start thinking of your forgiveness application. Feel free to give us a call if you require assistance in completing your PPP Loan Forgiveness Application. Stay tuned and stay connected.... Here’s wishing you a happy summer that’s filled with lots of sun and fun.