We have received many calls and emails regarding the Federal Advanced Child Tax Credit being sent by the US Treasury for 2021 only. This is an advanced payment of fifty percent of your project 2021 Child Tax Credit (CTC) with monthly payments starting July 15, 2021. The other fifty percent of the CTC you will claim with the filing of your 2021 Individual Tax Return. To qualify for the Advanced Child Tax Credit, you must have:

• Claimed a CTC with a filed 2019 or 2020 Individual Tax Return; or
• Provided the IRS with your information to receive the 2020 Economic Impact Payment using the Non-Filers Tool: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool; and
• Maintained a primary residence in the United States individually or with a spouse for more than six months of the year; and
• Have a qualifying child under the age of 18 at the end of 2021 and has child has a valid social security number; and
• Had earnings less than specified income limits.

If you have not applied for the Advanced Child Tax Credit the US Treasury the IRS will look at information available to automatically enroll you in the Advanced Child Tax Credit payment program. The following are helpful IRS tools:

• Check if you are eligible:

https://www.irs.gov/credits-deductions/advance-child-tax-credit-eligibility-assistant

• Submit your Information if you are a non-filer:

https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool

• Manage your Payments:

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

The following are commonly asked questions asked and answered by the IRS:

1. Question – What are Advance Child Tax Credit payments? (Added June 14, 2021)

Answer:

1. Advance Child Tax Credit Payments are early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax returnduring the 2022 tax filing season. If the IRS has processed your2020 tax return or 2019 tax return, these monthly paymentswill be made starting in July and through December 2021,based onthe information contained in that return.

1. Note: Advance Child Tax Credit payment amounts are not based on the Credit for Other Dependents,which is notrefundable. For more information about the Credit for Other Dependents, see IRS Publication 972, Child Tax Credit and Credit for Other Dependents.

iii. For more information about how your advance Child Tax Credit payments are calculated, see Topic D: Calculations of Advance Child Tax Credit Payments

2. Question – What do I need to do to receive advance Child Tax Credit payments? (Updated July 1, 2021)

Answer:

1. Generally, nothing. If you are eligible to receive advance Child Tax Credit payments based on your 2020 tax return or 2019 return (including information you entered into the Non-Filer tool for Economic Impact Payments on IRS.gov in 2020) you generally will receive those payments withoutneeding to take additional action.
2. You must take action if you have not filed your 2020 tax return or 2019 tax return. The IRS has unveiled an online Non-Filer tool that will allow individuals who weren’t required to file (and have not filed) a tax return for 2020 to file a simplified tax return. This simplified tax return will allow eligible individuals to register for advance Child Tax Credit payments and the third Economic Impact Payment, as well as claim the 2020 Recovery Rebate Credit. Taxpayers can also visit IRS.gov/filing for details.

3. Question – Do I need income to receive advance Child Tax Credit payments? (added June 14, 2021)

Answer:

No. Even if you have $0 in income, you can receive advance Child Tax Credit payments if you are eligible.

4. Question – What if I do not want to receive advance Child Tax Credit payments? (updated June 24, 2021)

Answer:

If you prefer not to receive monthly advance Child Tax Credit payments because you would rather claim the full credit when you file your 2021 tax return, or you know you will not be eligible for the Child Tax Credit for your 2021 tax year, you can unenroll through the Child Tax Credit Update Portal (CTC UP). CTC UP will allow you to unenroll before the first Advanced Child Tax Credit payment is made.

5. Question – When will the IRS begin disbursing advance Child Tax Credit payments? (added June 14, 2021)

Answer:

The IRS will begin disbursing advance Child Tax Credit payments on July 5. After that, payments will be disbursed on a monthly basis through December 2021.

6. Question – Will the IRS contact me about advance Child Tax Credit payments before they are disbursed? (added June 14, 2021)

Answer:

Yes, In June, the IRS will send you Letter 6417. This letter will inform you of the amount of your estimated Child Tax Credit monthly payments. This letter will also indicate where you can find additional information about advance Child Tax Credit payments.

7. Question – There are NINE additional questions and answers that you can read at the IRS Website:

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-a-general-information#a16

What a taxpayer needs to be most cognizant of is that you are receiving the Child Tax Credit that you would normally receive with the filing of your annual Individual Tax Return in advance of filing your tax return. Assuming the same 2021 filing facts/situation that you had in 2020, if you received a minimal refund with the filing of your 2020 Individual Tax Return and receive the Advanced Child Tax Credit you may be creating a 2021 tax liability by accepting the Advanced Child Tax Credit and not utilizing the full Child Tax Credit with your 2021 Individual Tax Return.

PLEASE BE CAREFUL with accepting the 2021 Advanced Child Tax Credit!!

We are available for consultations regarding this and other tax matters if you need assistance, please contact us. We are excited to welcome the new clients that have retained our services!

This is our update as of this time and we will strive to keep you informed; please keep in mind this is a fluid topic and subject to change at any time.

This information should be used to strategically navigate through the months ahead. We are in the office and are happy to assist you.

Please feel free to share this with your relatives and friends. Remember we are here to help our clients during this difficult time.

This plan is in pending litigation. U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers to transition back to regular payment as pandemic-related support expires. This plan includes loan forgiveness of up to $20,000. Borrowers and families may be asking themselves “what do I have to do to claim this relief?” This page is a resource to answer those questions and more. To be notified when the process has officially opened, please watch for our emails.

In addition to the above, the IRS has recently released a list of exceptions for the inclusion of a cancelled student loan debt, in income. Generally, had a taxpayer’s student loan been cancelled or repaid by someone else, the taxpayer was mandated to include the cancelled or repaid loan amount as part of their gross income, for tax purposes. However, The American Rescue Plan Act of 2021 has modified the treatment of student loan forgiveness for discharges in 2021 through 2025, wherein the taxpayer may be able to exclude the repaid or cancelled loan amount from his gross income, if the loan could be categorized as one of the following:

A loan for postsecondary educational expenses.
– A private education loan.
– A loan from an educational organization described in Code Sec.
170(b)(1)(A)(ii).
– A loan from an organization exempt from tax under Code Sec. 501(a) to
refinance a student loan

As a refresher, the following is a summary of the Plan:

1. Final extension of student loan repayment through December 2022, with payments resuming January 2023, and this pause in payments is automatic.

2. U.S. Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 or $250,000 for households. In addition, borrowers who are employed by non-profits, the military, or federal, state, Tribal, or local government may be eligible to have all their student loans forgiven through the Public Service Loan Forgiveness (PSLF) program. To be eligible:

a. Your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households)

b. If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt cancellation.

c. If you did not receive a Pell Grant in college and meet the income threshold, you will be eligible for up to $10,000 in debt cancellation.

3. What action is required to receive loan forgiveness:

a. Borrowers may be eligible to receive relief automatically because relevant income data is already available to the U.S. Department of Education.

b. If the U.S. Department of Education does not have your income data – or if you do not know if the U.S. Department of Education has your income data, the Administration will launch a simple application on their website.

As additional information becomes available, we will provide additional updates.

We are available for consultations regarding this and other tax matters if you
need assistance, please contact us. We are excited to welcome the new clients
that have retained our services!

This is our update as of this time and we will strive to keep you informed; please
keep in mind this is a fluid topic and subject to change at any time.

This information should be used to strategically navigate through the months
ahead. We are in the office and are happy to assist you.

Please feel free to share this with your relatives and friends and remember we
are here to help our clients.

The Where’s My Refund tool provides refund information for prior tax years.  Click on the following link to be redirected to the IRS website.

https://www.irs.gov/refunds

The SBA issued the following:

The latest round of Paycheck Protection Program funding opened one month ago and already the Biden Administration has succeeded in making major improvements to the program’s implementation:

• For businesses with fewer than ten employees, the share of funding is up nearly 60%
• For businesses in rural communities, the share of funding is up nearly 30%
• The share of funding distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40%

“The SBA is a frontline agency working to create an inclusive economy, focused on reaching women-owned, minority-owned, low- and moderate-income, rural, and other underserved communities in meaningful ways. While reported data illustrates we have made real strides in ensuring these funds are reaching underserved communities, we believe we can still do better,” says SBA Senior Advisor Michael Roth. “The important policy changes we are announcing further ensure inclusivity and integrity by increasing access and much-needed aid to Main Street businesses that anchor our neighborhoods and help families buildwealth.”

These simple progressive steps by the Biden-Harris Administration further demonstrate the commitment to racial and gender equity, reaching low and moderate-income, rural, urban, and other underserved areas. The SBA will:

• Establish a 14-day, exclusive PPP loan application period for businessesand nonprofits with fewer than 20 employees
• Allow sole proprietors, independent contractors, and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants
• Eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with abipartisan congressional proposal
• Eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participatingin the PPP; and
• Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification Number (ITIN) to apply for the PPP.

These actions will help to lay the foundation for a robust and equitable recovery for small businesses across the country. Small businesses employ nearly half of the American workforce; they create 2 out of 3 net new private-sector jobs; they reinvest 68% of revenues to build and sustain communities.

The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury. Lenders should also visit www.sba.gov or www.coronavirus.gov for more information.  While applications are no longer being accepted, PPP loan forgiveness is available for those who have already received PPP loans.

We are available for consultations regarding this and other tax matters if you need assistance, please contact us. We are excited to welcome the new clients that have retained our services!

This is our update as of this time and we will strive to keep you informed; please keep in mind this is a fluid topic and subject to change at any time.

This information should be used to strategically navigate through the months ahead. We are in the office and are happy to assist you.

Please feel free to share this with your relatives and friends and remember we are here to help our clients during this difficult time

The Where’s My Refund tool provides refund information for prior tax years.  Click on the following link to be redirected to the IRS website.

https://www.irs.gov/refunds

• Keep hard copies of all contracts and paperwork. Make sure you have paperwork proving your start and end dates to prove temporary work
• Keep all your receipts
• Don’t work in one location for more than 12 months in a 24 Month period. This will demonstrate to the IRS that you’ve abandoned your Tax Home
• If you rent out your primary residence while traveling, it may impact your eligibility for Tax-Free Stipends
• Get a regular PRN job in your tax home and if the income is substantial enough you don’t have to prove your financial obligation in the tax home.

1. Overtime Pay

If you’re considering working overtime for the extra money, you should consider asking for a higher taxable. Overtime laws stipulate that overtime pay is at least paid time and a half of all taxable income. A larger taxable income can help you earn more with Overtime Pay.

2. Loan opportunities.If you’re applying for a mortgage or a loan, banks do not consider tax free stipends or reimbursements in their accounting procedures. Banks will only look at your taxable income
3. Social Security.The check you get when you retire depends on the 35 years of your highest taxable income. Tax-free stipends or reimbursements are not considered for Social Security.
4. Chance of Injury.If you get hurt and can’t work you’re entitled to 2/3 of your taxable pay. This rate does not take into account tax-free stipends or reimbursements.

1. Alaska
   1. No Income or Sales Tax
   2. Relies on estate, excise and gift taxes
2. Florida
   1. Higher property Taxes
3. Nevada
   1. High sales tax 8%
   2. Tax gambling industry
4. New Hampshire
   1. No sales tax except alcohol
   2. High property tax
5. South Dakota
   1. Taxes Alcohol and Tobacco
   2. Low sales and Property taxes
6. Tennessee
   1. High sales and sin tax
7. Texas
   1. Texas Constitution forbids income tax for good
   2. High sales and property taxes
8. Washington
   1. Has never had income tax
   2. High sales taxes
9. Wyoming
   1. No income taxes for personal or corporate
   2. Low sales and property taxes as well
   3. Tax fossil fuel industry

Remember, when you go to file your taxes in April, or quarterly, you must pay income taxes in all of the states you worked and your home state. You have to pay in your home state even if you didn’t work there.

Also, if one of the states above is your tax home, you only have to pay income taxes in the states that you work. Now if your home state has a higher income tax than the states your working in, you don’t pay twice. The amount you pay in the state where you’re working will count as a credit towards the overall sum your home tax state requires.

The Tax Cuts and Jobs Act in 2017 did away with job related expenses at the federal level, but a handful of states still allow job expense deductions, such as New York, California, Alabama, Hawaii, and Arkansas, so there may be additional tax deductions you can make if you’ve worked in a qualifying state.

In order to prove you have a tax home, you, as a travel nurse will need to do one of two things:

Prove that the area in which your primary residence is located, is also the same area in which you earned the most income last year, or,

Be able to prove you visited your primary residence at least once in 2021, and are also able to prove that you have financially maintained it.

In order to keep your travel stipends, tax free, you will have claim and be able to prove you have a tax home. If you do not claim a tax home, your travel stipends will then be taxes at the same rate as your base income.

Travel nurses can take the following steps to ensure that they qualify for a tax home in the eyes of the IRS:

• Keep proof of any payments you are making to show that someone else is maintaining your primary residence. For instance, things like receipts for a house sitter, mortgage, rent, utilities, or home maintenance expense.
• Maintain your driver’s license and voter registration in your home state.
• Keep your car registered in your home state.
• Keep a per-diem position, if possible, in your home state.
• Return to your permanent home at least once every 13 months.
• File a Residence Tax Return with your home state.

Travel nurse stipends are tax-free. These tax-free stipends are used to cover duplicated expenses you incur while traveling with your job and include duplicated housing, travel and meal expenses. This tax-free money is not reportable as taxable income as long as you are duplicating these expenses.

https://www.gsa.gov/travel/plan-book/per-diem-rates

The Where’s My Refund tool provides refund information for prior tax years. Click on the following link to be redirected to the IRS website.
https://www.irs.gov/refunds