Everybody wants to pay as little in taxes as possible. Most people use software or hire an accountant to help them find all the deductions they can subtract from their taxable income and all the credits they can subtract from their final bill. But most tax breaks require you, the taxpayer, to plan ahead.
Even the most skilled accountant can't deduct a charity donation from your income if you forgot to save the receipt. Here are some tips from the IRS about year-round tax planning:
Child tax credit
Important changes to the child tax credit will help many families get advance payments for the credit starting this summer. The IRS will pay half the total credit amount in monthly payments beginning July 15. You will claim the other half when you file your 2021 income tax return. These changes apply to tax year 2021 only.
To qualify for advance child tax credit payments, you — and your spouse, if you filed a joint return — must have:
You can learn more about tax deductions for individuals on the IRS website. If you have more questions about how to make sure you're getting all the money you're owed, contact your tax professional.
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