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IMPORTANT UPDATE: IRS Opens Portals for Advanced Child Tax Credit Payments 2021

UPDATE

The IRS opened two portals for the Advanced Child Tax Credit payments. Taxpayers who wish to opt-out of the advanced child tax credit payments will need to use the “unenroll from advanced payments” portal. Taxpayers who were not required to file a tax return and have not already submitted his/her information should use the “enter your information” portal to receive the advanced child tax credit payments. The portals can be found at https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021.


May 20, 2021

The American Rescue Plan Act (the “Act”) expands the Child Tax Credit for tax year 2021. In addition to expanding the Child Tax Credit, the Act provides for advance payments of the 2021 Child Tax Credit.

Beginning in July, the IRS will automatically send Advanced Child Tax Credit payments to eligible taxpayers based on their 2020 tax return (or 2019 tax return if the 2020 tax return has not been filed and processed yet). The amount of the advanced payment will be up to $300 each month for each qualifying child under 6 years old at the end of 2021 and $250 each month for each qualifying child between 6 and 17 years old at the end of 2021. For example, if you have 2 qualifying children, one 4 years old and one 8 years old, you may receive up to $550 each month in advance child tax credit payments.

These payments are an advance on the child tax credit a person will claim on his/her 2021 tax return. Therefore, when a person files his/her 2021 tax return, the child tax credit amount will be reduced by the total amount of advance child tax payments received between July and December. That means that you may be required to repay some or all of the advanced child tax credit on your 2021 tax return.

Who is an eligible taxpayer?

Eligible taxpayers are:

  • Married taxpayers filing a joint return or Qualifying Widows with income up to $150,000;
  • Head of Household taxpayers with income up to $112,500; and
  • All other taxpayers with income up to $75,000.

Who is a qualifying child?

A qualifying child is one who:

  • Has a valid social security number
  • Lived with the eligible taxpayer for at least half the year
  • Is related to the eligible taxpayer
  • The eligible taxpayer provides more than 50% of the child’s support

What does this mean?

This means that unless a person opts out, he/she will automatically receive advance child tax credit payments. Therefore, the refund amount you are expecting may be reduced. This also means that parents that alternate claiming a dependent on their tax returns may now owe money to the IRS in 2021 rather than receiving a refund.

In the coming months, the IRS has stated taxpayers will have the opportunity to opt out of the advance child tax credit payments. The IRS has also stated taxpayers will have the opportunity to update information with the IRS such as filing status or number of qualifying children.

For additional questions related to the advance child tax credit payments, please contact BMD Tax Law Attorney Tracy Albanese at tlalbanese@bmdllc.com or (330) 253-9195.

Changes to Physician Assistant Statutes in Florida

In the last year, there have been many changes to the scope of practice and collaboration/supervision requirements for advanced practice providers such as APRNs and physician assistants in the state of Florida. In a previous Client Alert we discussed House Bill 607, which expanded the autonomous practice of APRNs providing primary care services in Florida.

Ohio Senate Bill 49 – Ohio Expands Lien Rights for Design Professionals

Effective September 30, 2021, Ohio granted limited lien rights to design professionals, including architects, landscape architects, engineers, and surveyors. Ohio Governor Mike DeWine signed Senate Bill 49 into law on July 1, 2021. This new law established a statutory right to lien commercial real estate by Ohio design professionals who, until now, could not file a lien for non-payment of professional services. Senator Vernon Sykes, a primary sponsor of Senate Bill 49, stated that the “legislation ensures that architects, engineers and other designers will get paid for their work, regardless of the outcome of their projects . . . It will support hardworking Ohioans by protecting the value of their labor . . ..”

Primary Care Practice Officially Defined in Florida for APRNs Practicing Autonomously

As many providers in Florida are aware, House Bill 607 (the “Bill”), which was passed in February of last year, gives certain APRNs in Florida the ability to practice autonomously. The only catch is that they must work in primary practice. When the Bill was initially passed, there was question as to what was exactly considered primary care, absent a definition from the Florida Board of Nursing. However, as of February 25, 2021, “primary care practice” has officially been defined.

Part II of the No Surprises Act

The Department of Health and Human Services (“HHS”) published Part II of the No Surprises Act on September 30, 2021, which will take effect on January 1, 2022. The new guidance, in large part, focuses on the independent dispute resolution process that was briefly mentioned in Part I of the Act. In addition, there is now guidance on good faith estimate requirements, the patient-provider dispute resolution processes, and added external review provisions.

Safer Federal Workforce Task Force - Guidance for Federal Contractors and Subcontractors

The Safer Federal Workforce Task Force has issued its Guidance for Federal Contractors and Subcontractors (Guidance). Note that the Guidance applies only to “covered contracts,” which are contracts that include the clause (Clause) set forth in Sec. 2(a) of Executive Order 14042 (Ensuring Adequate COVID Safety Protocols for Federal Contractors). The Federal Acquisition Regulatory Council (FARC) is to conduct rulemaking and take related action to ensure that the Clause is incorporated into federal contracts. Until that happens, federal contractors likely will not see the Clause in its contracts. Following is a broad summary of the Guidance.