The Tax Relief for American Families and Workers Act of 2024 has cleared key hurdles in Congress and seems likely to become law. Although it's a 2024 tax bill, it will retorcatvley apply to the 2023 tax year. The bill contains beneficial provisions for business owners and parents.
What's in the current version of the bill?
The maximum refundable amount per child under the Child Tax Credit would increase to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025, with inflation adjustments thereafter. This could put more money back in the pockets of families with children.
Taxpayers will have the option to use their earned income from the previous year to calculate the Child Tax Credit if their current year's income is lower. This could help families experiencing temporary financial hardship.
Immediate expensing of research and experimental expenditures for businesses instead of amortization over five years.
100% Bonus Depreciation Extended through the end of 2025.
Cutting off the ability to claim the Employee Retention Tax Credit after January 31, 2024.
If you have questions about the bill and its provisions, schedule a free consultation through our website today.
Disclaimer: The information provided on this blog is for informational purposes only and does not constitute written tax advice. Please consult with your own qualified tax advisor for specific advice regarding your individual circumstances.