On July 16, 2021, California’s governor signed Assembly Bill 150 (AB 150). Among other things, this bill includes the “Small Business Relief Act”, which allows taxpayers to receive a credit for their share of state and local tax (SALT) deducted from the net income on their federal returns for their qualified business(es). This elective tax payment will be available from January 1, 2021 through January 1, 2026.
Read MoreTags: Accounting, COVID, IRS, California State Tax, Small business relief act, federal tax, Income tax
About the Child Tax Credit (CTC) and advance payments
Taxpayers are allowed a CTC for each qualifying child. The credit was temporarily expanded and made refundable for 2021 by the American Rescue Plan Act (ARPA). It phases out for taxpayers with adjusted gross incomes (AGIs) over certain thresholds.
Eligible families will receive up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and older.
Read MoreTags: Accounting, COVID, Child Tax Credit, CTC, IRS
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