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Child tax credit

Coming to some households near you – the advanced child tax credit.

For some families, there is a new wave of stimulus checks that about to start arriving next month, in the form of the prepaid federal child tax credit payments. A quick recap about the child tax credit payments, before we share the bad news:

Some working families will get the full credit if they make less than $150,000 for a couple, and less than $112,500 for a family with a single parent, head of household, and $75,000 for a single parent, filing separately will qualify for the series of six monthly payments, which are set to start on July 15 and run through the end of this year. They’ll include either $250 or $300 per month for each eligible child that a family has, and then whatever amount those six checks add up to together, that same amount will also be delivered to the family next year, too, in the form of a credit when that family files its federal taxes.While these are a series of stimulus checks that families are just a few weeks away from receiving, you really have to look at them collectively, as one single amount of money that families are eligible for. What families are actually eligible for is a payment of up to $3,600 for each child under the age of 6, and $3,000 for every child between ages 6 and 17. Half of the amount will be paid as the tax credit next year, while the other half will take the form of monthly checks.

But here’s the most important point about all this. The monthly checks actually represent a prepaid federal tax credit. Because families are getting are getting half of the money upfront, though, there’s a danger. If you don’t usually receive a tax refund, then the advance payments could actually cause you to owe more when you file your 2021 taxes next year. In other words, if you normally owe money after you file your federal tax return, you will actually owe more taxes next year. This is going to make tax planning crucial this year.

Some parents might actually want to think about refusing the upcoming child tax credit payments. At a minimum, set aside part of the windfall you get from the child tax credit payments to cover your anticipated tax bill next year as you will need to repay the credit come tax time.

The IRS has opened an online site to enable taxpayers to unenroll from receiving advance payments of the 2021 child tax credit (CTC).

The new “Child Tax Credit Update Portal” allows parents to view their eligibility, view their expected CTC advance payments, and, if they wish to do so, unenroll from receiving advance payments (i.e., to opt out). Unenrolling may be desirable if, for instance, taxpayers expect the amount of tax they owe to be greater than their CTC refund when they file their 2021 tax return.

Please call or email us for more information and questions.

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Jocelyn Sihathep (Jo1)

Office Manager

We have a Sun Devil in the house! We are honored to add to our team, Jo. She is a graduate of Arizona State University (Fear the Fork) and is looking to broaden her knowledge and understanding of business and accounting.

She is the engine of our fine-tuned machine. Her “can do” attitude, commitment to customer service and outstanding organization skills allows us to focus on what matters most, our clients. She is amazing with technology and strives for excellence. She embraces the entrepreneurial spirit and is a great asset to our team.

Jocelyn Weatherley (Jo2)

Accountant

Jo was previously an accountant for a $60M company and their 13 subsidiaries. She is in charge of our accounting and bookkeeping department and serves our clients on their time schedule. Whether it is weekly, monthly or quarterly she helps provide reliable, useful and accurate information to our clients on their terms.

Jo performs full accrual accounting and is responsible for reconciling all accounts, journal entries, month end closing procedures and preparation of internal financial statements and analytics. She also assists in the preparation of sales and payroll tax returns. She holds a wide range of knowledge, from QuickBooks to travel (she spent most of her life in the UK), she’s your girl. She is excited to join the CCA team and ready to conquer tax season head on!

Dixie Cary

CPA and Tax Manager

Dixie is a Minnesota CPA and experienced accountant. She has over 25 years of accounting in both audit and tax, but her passion is tax. After years in the cold, she decided to leave the mid west and find a new home in Sunny Arizona. We are so happy that Dixie has joined our team.

Dixie leads and manages our entire tax department. She assists and leads a team through our busiest times while delivering quality, complete and accurate tax services for our clients. She is proficient in preparation, planning, and education of federal and state income taxes for individuals, businesses, estates, trusts, and exempt organizations.

Theresa Elaine Valade

CPA and Managing Partner
Theresa has over 27 years of experience in tax, audit and consulting. She was with the International CPA Firm of Arthur Anderson in Phoenix and San Francisco. She most recently was a partner with Moffitt & Company, P.C. Her areas of specialization are business consulting and advisory, audits, income tax planning and preparation, and IRS audit representation. Her industries of specialization are nonprofits, real estate, hospitality, franchises, mortgage banking and brokering, title insurance, escrow, health, and beauty.
One of Theresa’s biggest honors is being named the 2020 CPA firm of the year for her commitment and service to her clients during the challenges imposed by the COVID-19 pandemic. Putting passion and personalization at the forefront Theresa has led her firm to excellence by not only providing measurable results for clients but making them feel well taken care of during times of great uncertainty.
Theresa is also a member of the prestigious, Arizona Society of CPAs, ASCPA, 100% Membership Club. It is an honor to be part of this club that exhibit’s a high level of commitment to the Arizona Society of CPAs. We are privileged to be able to convey to our clients, staff, and colleagues of Theresa’s significant commitment to the CPA profession.