2021 Enhanced Child Tax Credit

2021 Enhanced Child Tax Credit

On March 11, 2021, President Joe Biden signed into law the American Rescue Plan Act (No. 117-2). Under this Coronavirus relief package, the child tax credit was expanded. The previous credit of $2,000 per child under the age of 17 increased to $3,000 for children ages 6-17 (17-year-olds became eligible), and $3,600 for children under the age of 6. A portion of these tax credits were paid in advance unless you opted out of the payments or weren’t eligible. They are also fully refundable, meaning any credits not used by the taxpayer will be paid out to them. Although the maximum child tax credit has been increased, not everyone will get the entire expanded tax credit per child.

How much will I receive per child?

The number of credits you are eligible for depends on your Adjusted Gross Income (AGI),  number of children, and their age. Read More

Safe Send

SafeSend Returns

Electronic Tax Return Delivery Process:

Rapacki + Co CPAs is pleased to offer electronic tax return delivery through SafeSend Returns. In addition to providing clients with a simple, easy-to-use process for securely reviewing and e-signing their tax documents, this system will help streamline communication between our professionals and those they serve.

Clients who use SafeSend Returns will be able to:

Electronically sign, save, and print their tax documents.
Have a live link to their tax documents for up to three years.
Electronically access their payment vouchers and receive email reminders of payments due.
Forward their tax documents to bankers and other professional advisors through a secure email link.

SafeSend Returns Process
Clients will be able to complete the following process using either their computer, smartphone, or tablet:

The client will receive an email from SafeSend Returns with a unique and secure access link when their tax documents are ready … Read More

Heads Up to Students Planning to Attend College Next Year

According to a StarTribune article published December 19, the number of high school seniors who have filed a FAFSA form – the Free Application for Federal Student Aid – was down 14 percent over this time last year. The FAFSA became available on October 1, and while there is still time to submit it, the earlier a student files the form the better.

The FAFSA is the portal to federal grants and loans as well as financial aid from states and individual colleges. Another important thing to keep in mind is that some states and colleges have earlier deadlines for scholarships applications (which often require a FAFSA form). These scholarships are often awarded on a first-come, first-served basis. So the sooner a student completes the form, the more likely they are to receive scholarship funds.

Some experts believe the shift to virtual learning has hampered students’ ability to file timely FAFSAs. … Read More