Hi there! If you're wondering what's causing heartburn in tax land, one thing we can safely include on the list is potential implications of the early payments of the child tax credit. Short version, payments of $250 - $300 per child under age 17 should start coming to taxpayers in July. Sounds great, right? Well - sorta'. As long as everybody knows what to expect - I'm all for it! But for taxpayers who are self-employed in particular - or even W-2 earners - generally the child credit is available to offset the current year tax liability. With the increased child credit in 2021 it's not a complete nightmare, but still, taxpayers may find themselves owing more in tax (and possibly penalty) in 2022 when it comes time to file 2021 tax returns. The IRS did release a tool today designed to help taxpayers opt out if desired - honestly I did not have good success trying to give it a test drive. Certainly in 2021 security is important, but in order to get an online IRS account taxpayers need to upload copies (Front and back) of their driver's license and be prepared to have a 'selfie' to authenticate the login. I'll look more closely tomorrow - but for tonight it's safe to say I have concerns. But again, as long as we avoid surprises when 2021 tax returns are prepared I'm not horrified. Maybe I should add "yet." Here's the link - https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021?utm_medium=email&SubscriberID=109801040&utm_source=TAX_A21JUN22&Site=AICPA&LinkID=12205789&utm_campaign=Tax21&cid=email%3ATAX_A21JUN22%3ATax21%3Anew%20online%20portal%3AAICPA&SendID=372661&utm_content=Newsletter&fbclid=IwAR1PWp-hqAdU_1GcRqXX8pOPoWeCqMuV0__ugsVWWcq6Vp8RJ9sEfu2swQQ
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