Month: June 2021

Child Tax Credit 2021 Update: Advanced Payments

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**Updated October 15, 2021. Original Post June 25, 2021.**

There have been important changes to the Child Tax Credit (CTC) that will help many families receive advance payments this summer. In order to receive the new credit, you may need to take some steps to ensure you get the funds. Families who are filing taxes and do not currently receive the Child Tax Credit must take action before October 15, 2021, otherwise you will have to wait to receive the credit when you file your taxes in 2022.  If your family does not earn enough to file taxes, and you want to get the child tax credit in monthly payments now, you must enroll online by November 15, 2021.

The CTC is a tax credit that taxpayers can get for each qualifying dependent child on their tax return. A tax credit directly reduces the amount of taxes you owe, giving you a dollar-for-dollar reduction of your tax liability. The CTC in 2021 is a fully refundable tax credit, meaning that eligible families can receive it, even if they owe no federal income tax. Before this year, the refundable portion of the CTC was limited to $1,400 per child. 

The American Rescue Plan has expanded the CTC for the 2021 tax year. These changes will only apply for the 2021 tax year. The CTC has been revised in the following ways: 

  • An increase to $3,600 per qualifying child under the age of 6.  
  • An increase to $3,000 per qualifying child between the ages of 6 and 17.  

Is My Family Eligible for the Credit?

Your family qualifies for the credit if:

  • The child is your son, daughter, grandchild, stepchild or adopted child; younger sibling, step-sibling, half-sibling, or their descendent; or a foster child placed with you by a government agency.
  • The child was under 17 at the end of 2020.
  • The child has a valid Social Security Number.
  • The child lived with you for more than half of 2021.
  • The child did not provide over half of their own support for 2021.

To Qualify 
Filers must have had a 2019 or 2020 adjusted gross income below the following levels to qualify for the full monthly payment: 

  • $75,000 for individual taxpayers 
  • $112,500 for heads of households
  • $150,000 for married taxpayers filing jointly and widows/widowers

What to Expect  

  • The Internal Revenue Service (IRS) has started sending out letters to let families who it knows, based on tax returns, might be eligible to receive advanced monthly CTC payments beginning July 15.   
  • Eligibility is based on either a filers’ most recent tax return or information submitted to the IRS using the simplified sign-up tool.  
  • Families eligible for advance CTC payments will receive a second, personalized letter listing an estimate of their monthly payment.   
  • The advance CTC payments are worth up to $300 per month for each qualifying child under the age of six and up to $250 for each child between the ages of 6 and 17.  
  • The IRS will pay half of the total credit through the advanced monthly CTC payments and pay the other half of the credit when the taxpayer files their 2021 tax return.  
  • Taxpayers can verify their eligibility for the payments or opt-out of the advanced payment program by visiting the IRS Child Tax Credit Update Portal.  
  • For more information about the unenrollment process, including a schedule of deadlines for each monthly payment, visit the IRS FAQ page.

Eligibility is Determined from 2020 or 2019 Tax Returns   

Filers who have filed a return in either 2019 or 2020 will not need to do anything. The IRS will take the information from those tax returns to determine eligibility for the advanced CTC payments. The IRS will only use a 2019 return if a 2020 return has not been filed or is otherwise unavailable to use.  

What about Filers who don’t regularly file taxes?  

Filers who have not filed for 2019/2020 may register online with the IRS simplified sign-up tool. This tool will allow non-regular filers to provide the IRS with the basic information needed to determine if they qualify for the CTC.  

Who should unenroll?

Instead of receiving the advanced monthly payments, some families may prefer to wait until the end of the year to receive the entire credit as a refund when they file their 2021 tax return.

The unenroll feature may also be helpful to some families that no longer qualify for the Child Tax Credit or believes they will not qualify when they file their 2021 tax return. This could happen if, for example:

  • Their income in 2021 is too high for them to qualify for the credit
  • Someone else (an ex-spouse or another family member, for example) qualifies to claim their child or children as dependents in 2021
  • Their main home was outside of the United States for more than half of 2021

What About Immigrant Families?

You can apply for and receive a tax credit with NO negative effect on any immigration application you might file. Immigration does NOT ask about tax credits or consider them negatively in your immigration application process.

Is a Social Security Number Needed to be Eligible for the CTC?  

Parents are not required to have a social security number to be eligible for the CTC. However, parents must have an Individual Taxpayer Identification Number (ITIN) to claim the CTC for their eligible children.   

Do Children need to have a Social Security Number to Qualify for the CTC?  

Yes. The CTC is only available for children 17 years and younger with social security numbers.   

What about Dependent College Students?  

Dependent college children who are under the age of 24 at the end of the tax year, who are full-time students for at least five months of the year, and who are younger than the tax filer may be considered a qualifying child for the Earned Income Tax Credit (EITC). The EITC is a tax break that helps low to moderate-income taxpayers.

For more information, visit the IRS EITC page: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc.   

Additionally, dependent college children may be claimed for a $500 non-refundable tax credit as an Other Dependent Child. Claiming an Other Dependent Child will not affect advance CTC payments but may affect a qualifying filer’s 2021 tax return.  

How to Receive CTC Payments?  

The IRS is calculating this payment based on the most recent of 2020 and 2019 returns. Potentially qualifying filers should file their tax return as soon as possible to receive the CTC.  Filers who have not filed for 2019/2020 may register online with the IRS simplified sign-up tool. Families who are not currently receiving the Child Tax Credit must take action before October 15, 2021, otherwise you will have to wait to receive the credit when you file your taxes in 2022. 

Advanced CTC Payment Options  

  • The IRS will be using information from tax filers’ most recent tax returns or from non-filers tools to send out advanced monthly CTC payments. Eligible families will receive the advanced payments by direct deposit or check.   
  • Direct deposit is available to tax filers who include their bank information and select it as an option.  
  • Filers can also elect to have advance CTCs mailed out.  

How to update direct deposit information

To update direct deposit information, families should use the Child Tax Credit Update Portal to provide the IRS with their most recent bank account information to receive their monthly payments.

To change the bank account receiving the advanced payments, update the routing number, account number and indicate whether this is a savings or checking account. The advanced payments will start going to this updated account August 13.

It is important to note that the advanced payments can only be direct deposited into one account.

How to switch from paper check to direct deposit

The Child Tax Credit Update Portal will indicate whether families are enrolled to receive their advanced payments by direct deposit. If they are not enrolled to receive their advanced payments by direct deposit, they will receive a check each month.

To receive the advanced payments by direct deposit, they can use the Child Tax Credit Update Portal to add their bank account information. The Update Portal will need their routing number, account number, and indicate if this is a savings or checking account.

The IRS urges any family receiving checks to consider switching to direct deposit. With direct deposit, families can access their money more quickly and eliminates the chance of a stolen, lost, or undelivered check.

Watch Out for Scams  

The IRS urges everyone to be on the lookout for scams relating the advanced CTC payments. The only way for eligible families to get the advanced CTC payments is to have filed a tax return with the IRS or registered online through the non-filers signup tool, which can only be done on the IRS.gov website. These are the only two ways to get the advanced CTC payments; any other option is a scam.  

People who receive emails, phone calls, or text messages related to advanced payments should be cautious. The IRS never sends electronic communications, which were not requested, to anyone asking them to open attachments or visit non-governmental websites.  

For more information on how to protect yourself from scams, visit the IRS Tax Scams page. This webpage provides information on how scammers might target you to obtain your personal information or money. 

We are still waiting on additional details from the IRS and will update our website with more information. For more information about the CTC, visit the IRS advanced CTC 2021 page at IRS.gov/childtaxcredit2021 or their FAQ page.

Action Alert: NC Bill Removes Protections for Motel Renters

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The North Carolina General Assembly is considering legislation that would take rights away from some of the most vulnerable renters in our community.  

HB 366 is a Regulatory Reform Bill with a provision that would drastically change the way people who live in motels are treated when it comes their rights as renters and significantly exacerbate the state’s affordable housing crisis.

The bill will be considered for advancement by the N.C. Senate’s Agriculture, Energy and Environment Committee at 10 a.m. Tuesday, June 29.

The legitimate purpose of HB 366 is for the faster removal of criminal actors who reside at motels, an issue exposed after eviction moratoriums prevented motel owners from removing residents during the COVID-19 pandemic.

However, the legislation would also have the unintended consequence of forcing our most vulnerable community members into homelessness by eliminating tenant protections recognized by the N.C. Court of Appeals in Baker v. Rushing, a case litigated by Charlotte Center for Legal Advocacy under its old name, Legal Services of Southern Piedmont.

Thousands of N.C. families rely on motels as the housing of last resort to avoid homelessness, especially in Charlotte where there is an extreme shortage of affordable housing.

The pandemic has forced more families into this situation as people lost their jobs and could no longer afford traditional housing.

Thanks to our efforts 30 years ago, N.C. law recognizes that motel residents, who are not tourists with a regular home elsewhere, have the same rights as tenants in conventional homes and apartments. 

Those rights include a habitable dwelling with working plumbing, heat, and wiring along with the due process of a fair trial in cases of eviction.

HB 366 would automatically re-classify all motel tenants as “transient guests” for the first three months of their leases regardless of their record of rental payments and good conduct. Doing so gives motel landlords unlimited power to punish and evict tenants who complain about living conditions such as rodent infestation, inoperable plumbing, HVAC issues, or noise. 

For those with an eviction on their record, getting approved to rent an affordable place to live is extremely difficult. HB 366 would enable motel owners to evict already struggling residents, including children, and leave them with little to no chance of finding safe housing elsewhere.

This practice will needlessly increase our homeless population and strain public resources. And in the event of another public health crisis, these residents will not be protected by measures implemented to ensure safe shelter just because they do not have conventional housing.

Further, the legitimate issue this bill is targeting can be handled through education on current N.C. law, which already protects landlords by permitting expedited evictions through the court system for criminal actors.

If this provision remains in the legislation, it will only drive our state further into crisis when it comes access to affordable housing.

As an advocate for low-income people, Charlotte Center for Legal Advocacy urges the bill’s sponsors and the Senate Agriculture, Energy and Environment Committee to remove this provision from the legislation and protect tenants’ rights for all North Carolinians.

What you can do

Contact members of the Senate Agriculture, Energy and Environment Committee and HB 366 sponsors. Tell them long-term motel residents have the same rights as traditional tenants and this harmful measure should not become law. The Agriculture, Energy and Environment Committee will meet next Tuesday, June 29, at 10 a.m. to consider this bill.

HB 366’s sponsors are:
Rep. Larry Yarborough
Rep. John R. Bradford, III
Rep. Timothy D. Moffitt
Rep. Dennis Riddell
Rep. Jerry Carter
Rep. Phil Shepard

Learn about this this systemic problem in our community to understand how HB 366 will impact our neighbors:

WSOC-TV – Charlotte Motel Threatening to Evict Some People Who Live There
WFAE – Finding Home: Long-Term Hotel Residents Face Eviction Threats

This issue is not limited to Charlotte or North Carolina. The expansion of motels as weekly rental options is a systemic problem symptomatic of our country’s affordable housing crisis. Removing landlord-tenant protections for those who have no other options for housing is not the solution.

Learn more about the trend and how people get pushed out of our traditional housing system:

New York Times Magazine – When No Landlord Will Rent to You, Where Do You Go?

Recognizing Juneteenth is A Start

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This week Congress overwhelmingly approved a measure that President Biden signed into law to designate Juneteenth as a federal holiday—a long overdue recognition of a critical moment in our nation’s history. 

On June 19, 1865 in Galveston, Texas, the last group of enslaved people in the U.S. learned they were free two years after the Emancipation Proclamation ending slavery had been issued.  

Today, we celebrate Juneteenth to commemorate the end of slavery and persevere as we continue on the long journey toward freedom.  

Charlotte Center for Legal Advocacy has chosen to observe the holiday each year by closing its offices. We will be closed on Friday, June 18, this year. We do so to give our staff time for celebration, education and connection.

We applaud Congress for this recognition, but we also demand that lawmakers prioritize racial equity with the same level of support when it comes to economic mobility, education, health care, housing, policing and voting rights. 

James Baldwin famously said, “Not everything that is faced can be changed; but nothing can be changed until it is faced.” 

Recognizing Juneteenth is a small step toward racial reconciliation for our country, but we cannot begin to eradicate the racist systems that rule our society without addressing our shameful past head on.

Juneteenth is that starting point. It encourages dialogue around the deferred dream of freedom that has always existed for Black people in the United States and what our nation truly values.  

Black people were not included when the phrase “justice for all” was originally championed in the vision laid out for our country. Since then, systems of power have intentionally kept Black Americans from being included.  

On Juneteenth we imagine what our country could be if we prioritized racial justice and equity to build a truly inclusive democracy that realizes the ideals our country was founded upon. 

Equal justice for all is impossible to realize without this hard, necessary work.

At Charlotte Center for Legal Advocacy, we fight for equal justice under the law every day for our clients, a majority of whom are people of color disproportionately impacted by poverty.  

We commit to actively dismantling these systems through our work. 

We are striving to build a more just community. And doing so requires taking a hard look at our practices and making sure that everything we do lives up to our standard of justice—one that truly ensures equity and opportunity for all. 

Thank you for supporting us in these efforts.  

Happy Juneteenth from Charlotte Center for Legal Advocacy. 

Celebrate Juneteenth with us: 

Educate yourself: Spend the day learning about Juneteenth’s history, including how Black families felt after being emancipated. Watch the documentary 13th on Netflix, or engage with other movies, shows, books and podcasts about systemic racism. Check out this Anti-Racist reading list from Charlotte Center for Legal Advocacy’s staff.  

Participate in local and virtual Juneteenth events:  Find an event near you with this local guide from Axios Charlotte

Juneteenth Programing at the Harvey B. Gantt Center 

Virtual Programing from the National Museum of African American History 

Reflect: While slavery ended in 1865, the racist system it built persists today. Use June 19 as a day to reflect on critical issues that perpetuate discrimination against Black people in America and throughout the world. 

Place a sign in your front yard: Raise awareness and show your support for Juneteenth by decorating a sign for your front yard or door. This is a great way to help educate younger kids in your neighborhood who may not know about the holiday. 

Celebrate with a cookout: Gather your friends and family together (safely) to celebrate freedom. 

Keep the spirit of this special day alive by continuing to fight for justice for ALL! 

Action Alert: Supreme Court Upholds ACA Once Again

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Today the Supreme Court ruled 7-2 in favor of upholding the Affordable Care Act (ACA) for the third time.

This decision is wonderful news for Charlotte Center of Legal Advocacy and the people it serves as the ACA has helped make health care accessible to millions of uninsured Americans since 2010. 

More than 31 million Americans rely on the ACA for affordable coverage that provides free preventive care, protection for pre-existing conditions and a ban on lifetime caps for insurance benefits, along with the peace of mind that comes with being insured.  

Access to health care is essential for all people as efforts to fight the COVID-19 pandemic continue. This decision ensures that access without disrupting our healthcare system at a time when care is needed most.  

For those who have coverage through the ACA, this decision does not change current plans. Those who are uninsured or interested in changing their health plan can still sign up for 2021 coverage through August 15 using the Special Open Enrollment Period. Financial assistance to pay for coverage is still available.  

The Charlotte Center for Legal Advocacy’s health insurance navigators provide free, unbiased assistance to anyone who needs help signing up for coverage or understanding their options. For more information, visit charlottelegaladvocacy.org/getcovered. 

NCBA Honors Robinson Bradshaw, Access to Justice Pro Bono Partner, with State-wide Award

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Three huge projects. One unprecedented year. Despite the challenges and legal boom of 2020, Robinson Bradshaw took charge in their pro bono initiatives. For their unyielding commitment to pro bono service demonstrated by their undertaking of several complex and impactful projects during 2020, the North Carolina Bar Association granted Robinson Bradshaw  the Law Firm Pro Bono Award with Charlotte Center for Legal Advocacy’s nomination.  

In the first project, Robinson Bradshaw successfully litigated against the Lake Arbor Apartments with Charlotte Center for Legal Advocacy and the North Carolina Justice Center. Led by Julian Wright, the firm was instrumental in securing over $547,000 in settlement funds for tenants who were forced to pay rent for sub-standard housing. Wright says: “Where you live is important. For a lot of people, it’s the base of their life, it’s the place from where they go out into the world and do things they want to do, it’s where families are raised.”  

Overall, Julian Wright, Caroline Reinwald, Tami Redi, Adam Wehler, Adam Doerr, Andy Tarr, David Wright, Erik Zimmerman, Satyra Riggins and Jake Raynor donated 510 hours of legal services to the Lake Arbor case. Because of these advocates’ tireless commitment, class members were reimbursed for rent paid and compensated for the violation of their rights as tenants. Furthermore, Robinson Bradshaw set a strong precedent of preserving safe and affordable housing in the Charlotte area—a key issue in the region.   

Robinson Bradshaw’s second project creatively bolstered pro bono resources to represent The Advocacy Center in a real estate transaction to acquire our new building. The effort was led by Robinson Bradshaw’s Jane Ratteree, who focuses her pro bono initiatives on “helping organizations that in turn help individuals.” It is important for The Advocacy Center “to have a more dignified space. To show the clients that they are valued as clients, that they are coming to a place that’s going to treat them well and do a good job for them,” Ratteree says. Ratteree’s service will make a monumental impact on Charlotte’s legal services community, ensuring that The Advocacy Center’s staff have a modern office space for our expanding programs. Ratteree contributed nearly 250 hours to this effort. 

In the third project, Robinson Bradshaw, led by attorney Adam Doerr, successfully litigated on behalf of low-income families against the State of North Carolina to ensure eligible low-income families with children would receive $335 dollars in COVID-19 relief. Almost 25,000 low-income residents applied to receive the grant after a court ordered the State to re-open the deadline for low-income families to apply, resulting in over $5 million for those most in need. 

 “When we realized that many of the families most in need would miss out on these critical pandemic relief funds, we knew that the Charlotte Center for Legal Advocacy would have the expertise and resources to help us manage the kind of impact litigation and outreach campaign needed to ensure that these state grants actually got to the low-income families in our community,” said Doerr. 

He and the Robinson Bradshaw team were attentive, swift and impressive. However, Doerr’s commitment to the successful execution of the project  demonstrates his and the firm’s innovative approach to wholistic pro bono service. Doerr and team recognized that their litigative efforts were only part of the picture and did not rest until as many eligible families received the grant as possible, including negotiating contracts with a web development company and national call center provider to handle a statewide outreach effort. Overall, Robinson Bradshaw donated 581 hours to this effort. 

In addition to these impactful projects, Robinson Bradshaw as a firm has donated 1,293 hours of legal services to low-income clients through the Access to Justice Pro Bono Partners Program over the years. Robinson Bradshaw routinely has several attorneys inducted to the Access to Justice Pro Bono Partners Honor Roll (requires either 20 hours of service or closure of three cases in the previous year) and the NC Pro Bono Honor Society (requires at least 50 hours of service in the previous year). Robinson Bradshaw attorneys undertake pro bono cases in areas such as wills, consumer protection, access to healthcare, immigration and others.  

Julian Wright, Jane Ratteree, Adam Doerr and Robinson Bradshaw’s commitment to serving low-income families in North Carolina through these complex projects demonstrates the firm’s innovative and comprehensive approach to pro bono service. They go beyond individual case referrals to ensure the Charlotte-Mecklenburg community has equal access to justice and civil legal aid. We applaud their creative leadership of non-traditional pro bono initiatives and hope that Robinson Bradshaw’s efforts inspire other firms in the area. Congratulations!  

What Is Included in Every Healthcare.gov Plan?

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Need to enroll in a health insurance policy or update the one you have?

Open Enrollment for the Health Insurance Marketplace (Healthcare.gov) is Nov. 1, 2022, to Jan. 15, 2023.

GET COVERED

All Healthcare.gov plans are required to cover preventive health services 100%. Additionally, these plans are required to include 10 types of health services—called Essential Health Benefits. Keep reading to learn more about these services below.

Preventive Health Services

Preventive health services are routine health care procedures, like screenings, check-ups and counseling to prevent illness, disease and other health problems.

This means that insurance companies cannot charge you a copay or coinsurance to get this type of medical attention. For example, immunizations, children’s vision screenings, contraception and well-woman visits are free. Get specific lists of preventive services for adults, women and children.

Preventive services are free only when you get them from a doctor or other provider in your plan’s network. (A network is the facilities, providers and suppliers your health insurance company has contracted with to provide health care services.) Talk to your doctor about taking advantage of these free services to keep you and your family healthy. 

Essential Health Benefits

While most of these services won’t be free, plans will pay for at least a portion of the costs of these services.

  • Ambulatory patient services (outpatient care you get without being admitted to a hospital)
  • Emergency services
  • Hospitalization (like surgery and overnight stays)
  • Pregnancy, maternity, and newborn care (both before and after birth)
  • Mental health and substance use disorder services, including behavioral health treatment (this includes counseling and psychotherapy)
  • Prescription drugs
  • Rehabilitative and habilitative services and devices (services and devices to help people with injuries, disabilities or chronic conditions gain or recover mental and physical skills)
  • Laboratory services
  • Preventive and wellness services, as well as chronic disease management
  • Children’s oral and vision care

Learn more here: https://www.healthcare.gov/coverage/what-marketplace-plans-cover/ 

Learn more about how to get covered on Healthcare.gov, or call 980-256-3782 to reach a Health Insurance Navigator for free assistance. You can leave a message with a quick question or schedule a longer phone appointment.

Action Alert: Support the 2040 Plan Today for a Better Charlotte Tomorrow

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Revised draft of Charlotte Future 2040 Comprehensive Plan charts a sure path toward a more just, equitable community.

The statement below is from the local group Neighbors for More Neighbors CLT, of which Charlotte Center for Legal Advocacy is a founding member. Learn more about our coalition and join our campaign for a equitable, inclusive and prosperous community for all Charlotte residents.

The Neighbors For More Neighbors CLT is a growing coalition of non-profit organizations and neighborhood leaders and individual citizens guided by a vision for a more diverse and inclusive city. Our coalition remains steadfast in our support of the Charlotte Future 2040 Comprehensive Plan and urges the Charlotte City Council to adopt it at the June 21 City Council meeting as currently revised.

The revision to the plan includes the important addition of an Anti-Displacement Stakeholder group composed of neighborhood leaders and housing advocates, as well as residents threatened by displacement.  This is an important addition to ensure the Plan fulfills its promise of an equitable growth framework. In addition, we are in support of the revision to Policy 2.1, which retains largely intact a key element of the plan to increase diversity of housing types on single-family lots. We are encouraged by the City Council taking a bold action to ensure that our espoused values, expressed vision becomes our lived experience. We appreciate your recognition that we must continue to press forward for change.

Why This Matters:

  • Equity is a key goal of the Charlotte 2040 Plan.  In the second draft plan’s own words, “Equity is, in a sense, what we owe to each other: a fundamental part of our social contract that recognizes the inherent value of every Charlotte resident, actively works for justice and equality of opportunity in our City, and treats every person with dignity.” 
  • Charlotte is hyper-segregated racially and economically.  A group of well-funded private interests that benefit from the status quo are working hard to discredit this plan and mislead the public.
  • The revision to the plan includes the important addition of an Anti-Displacement Stakeholder group composed of neighborhood leaders and housing advocates, as well as residents threatened by displacement.  This is an important addition to ensure the plan fulfills its promise of an equitable growth framework. In addition, we are in support of the revision to Policy 2.1, which retains largely intact a key element of the plan to increase diversity of housing types on single-family lots. We are encouraged by the City Council taking a bold action to ensure that our espoused values, expressed vision becomes our lived experience.

Learn, Support, Speak Up for the 2040 Comprehensive Plan

Action Alert: Don’t We All Deserve a More Just, Equitable Community? Read our last statement on the 2040 Plan

Myths and Facts About the Charlotte Future 2040 Comprehensive Plan 

How to get involved:

Join Neighbors for More Neighbors CLT in calling on broad, public adoption of the Charlotte Future 2040 Comprehensive Plan with approval by all City Council members at the June 21, 2021 business meeting.