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In an effort to continue stimulating the economy, the IRS will allow taxpayers who qualify for the child tax credit to receive half of the funds as equal monthly payments from July through December 2021 and the remaining half at time of annual tax filing. The IRS calculates the payment based on a person’s 2019 or 2020 tax return and will disburse payments by direct deposit if correct banking information has been provided to them. Otherwise, checks will be mailed.
Always separate business and personal transactions to avoid comingling funds. Open a business bank account and get a separate business credit card as soon as you decide to go through with your startup. This not only separates your accounts but also helps your business build its own credit rating to purchase assets and obtain funding that is not backed by your personal credit. Business Owners who comingle funds run the risk of tax deductions being disqualified thus increasing tax bills. The IRS already announced small business audits will increase by 50% in 2022, so let’s stay ready so we don’t have to get ready.
