Child Tax Credit Update: What You Need to Know
AKA: Why you might want to wait until January 29th to file your taxes.
As a writer, I'm always looking for ways to inform my friends and family about important financial updates that may impact their lives. Recently, there have been talks in Congress about expanding the Child Tax Credit. In this article, I'll provide an overview of the potential changes and how they could affect you.
Background: The Child Tax Credit is a tax credit given to taxpayers with children under the age of 17. In 2021, the credit was temporarily expanded as part of a COVID-19 relief package, but it has since reverted to its original amount. However, lawmakers are now discussing a potential deal to expand the credit once again.
What's in the Deal? According to recent reports, a bipartisan deal is being negotiated that would expand the Child Tax Credit. The refundable portion of the credit would increase to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025. The credit would also be indexed to inflation, meaning it would increase as the cost of living goes up. There are even talks to go from 2000 to 3600 dollars this tax return.
Who Would Benefit? The expanded Child Tax Credit would benefit families with children under the age of 17. The credit would be available to taxpayers with incomes below a certain threshold, but the exact amount has not yet been determined.
When Will the Deal Be Passed? While there is no guarantee that the deal will be passed, some lawmakers are optimistic that it could be passed by January 29th. However, negotiations are ongoing and the final details of the deal are still being worked out.
The potential expansion of the Child Tax Credit could have a significant impact on families with children. While the details of the deal are still being finalized, it's important to stay informed about any updates and how they may affect you. As always, I'll be here to provide you with the latest information and help you navigate any changes to your financial situation.
