July 27, 2021
No items found.

New York Times Publishes Explainer on Child Tax Credit

The revamped Child Tax Credit went into effect this month, with much-needed money being distributed to parents across the country. While this will be a boon for many parents, it also has the potential to create headaches for parents come tax season. Thankfully, the New York Times published helpful suggestions on who should take the credit and who should opt out.

As a reminder, the Child Tax Credit was expanded under the most recent round of stimulus, passed over the winter. The coverage expanded and the total amount went up, to $3,600 per year for each child under 6. The distribution mechanism also changed. Instead of claiming the credit when filing taxes, now parents can receive cash deposits of $300 per month per child. The credit is also now fully refundable, allowing parents to receive the credit even if they owe no taxes.

However, for some households, the Times explains, it can be a good idea to opt out of receiving the direct deposits. For separated parents who share custody, for instance, each parent may alternate years for claiming a dependent. Because the new deposits are based on the 2019 or 2020 tax returns, it may automatically go to the most recent parent to claim a dependent, even if it is the other parent’s year.

Other reasons to opt out include major changes in income, self-employment, and parents who expect large refunds. We will continue to cover the Child Tax Credit as it has the potential to be expanded even more in the coming years.


white line

Women Leaders Weigh in on the Pandemic and Beyond

November 23, 2020
No items found.
As part of the Women’s Forum for the Economy and Society, New York Times reporters and editors sought the perspectives of some of the leading executives in the business and finance world about the role women have and can continue to play in the post-pandemic work world.

As President, Joe Biden Can Protect Workers

November 19, 2020
No items found.
In a new blog post at the Institute for New Economic Thinking, professors David Michaels and Gregory Wagner lay out an 11-point overview of a longer policy paper that they believe president-elect Joe Biden can enact on day one in office to protect workers

Historic Victory for Paid Family Leave in Colorado

November 12, 2020
Paid Family Leave
While much of the post-election attention has been focused on the presidential race, there has been little said about what looks to be a historic victory for working Coloradans, who have chosen to join eight other states, including New York, and Washington D.C. in providing paid family leave for new parents as well as those dealing with a family emergency. This is the first paid family leave law to be won through a ballot initiative, rather than implemented by elected officials.

Get In Touch

Knowing where to turn in legal matters can make a big difference. Contact our employment lawyers to determine if we can help you.