2/18/2023 0 Comments Child tax credit 2020 changesThe revenue procedure modifies and supersedes Sections 3.05 and 3.07 of Rev. Therefore, the required contribution percentage of 9.83% for 2021 is unchanged. Section 9661 does not amend the required contribution percentage that a taxpayer uses to determine whether the taxpayer and members of the taxpayer’s family are eligible for employer-sponsored minimum essential coverage. Taxpayers use the applicable percentages in the table to determine the amount of the PTC they may claim for the tax year. 36B(b)(3)(A) to provide temporary percentages that are listed in the revenue procedure. 31, 2021.įor the 20 tax years, Section 9661 of the American Rescue Plan Act amends the applicable percentage table in Sec. The new larger amount will be adjusted for inflation for tax years beginning after Dec. 32(i) to provide that the EITC is not available for taxpayers whose aggregate amount of disqualified investment income exceeds $10,000, an increase from $3,650. In a permanent provision, for tax years beginning in or after 2021, Section 9624 of the American Rescue Plan Act modifies Sec. Tables with the revised numbers appear in Section 4.01 of the revenue procedure. In another change that only applies for tax years beginning in 2021, Section 9621 of the American Rescue Plan Act temporarily modifies the EITC with special rules, including, for example, special rules for eligible individuals with no qualifying children and higher applicable phaseout amounts. 24(d) do not apply to this temporary provision. The partial refundability provisions under Sec. Only for tax years beginning in 2021, Section 9611 of the American Rescue Plan Act increases the refundable portion of the child tax credit to $3,000 for qualifying children who have attained age 6 but not 18 by the end of the 2021 tax year, and $3,600 for qualifying children who have not attained age 6. The IRS on Monday issued adjusted amounts for the child tax credit, the earned income tax credit (EITC), and the premium tax credit (PTC) for 2021, to reflect changes enacted in the American Rescue Plan Act of 2021, P.L.
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