Learn about new IRS Guidelines and how the passage of the Child Tax Credit Expansion Bill through the House of Representatives impacts your tax filing strategy and refund for you and your family.
CHILD TAX CREDIT UPDATE 2024 | Bill Passes House
Breaking News, The House Passes the Child Tax Bill! In a world where tax laws often seem like a labyrinth, this recent development could be a game-changer for millions of families across the country. Today, we’re exploring what it means for you.
Here’s an essential update for everyone, especially parents: The Child Tax Credit Expansion Bill has successfully passed in the House of Representatives and is currently under consideration in the Senate. If enacted by President Biden, it will retrospectively affect the 2023 tax year, offering additional tax benefits to eligible taxpayers.
IRS Commissioner Danny Werfel has given crucial advice in light of these developments. He recommends not delaying tax filings because of anticipated changes to the child tax credit. The IRS intends to automatically update returns for those who file before the legislation is implemented. This means taxpayers do not need to take any extra steps, ensuring a more streamlined process for early filers.
This bill is a segment of a broader $78 billion bipartisan tax-break package. According to the Center on Budget and Policy Priorities, it is projected to significantly benefit many taxpayers. Despite these positive changes, National Taxpayer Advocate Erin Collins has cautioned that new legislation during the filing season could lead to refund delays.
As of now, the IRS is preparing for more than 146 million individual tax returns by the April 15 deadline. Commissioner Werfel’s guidance is clear: file when you’re ready, especially if you have all the necessary information for a complete and accurate return.
The key consideration for taxpayers is whether to file now or wait for tax software and filing methods to be updated with the new laws.
- If you file now, you risk using the old rules, but the IRS will automatically update your return if the bill passes.
- If you wait, you might file under the new rules without requiring IRS adjustments, but this could delay your refund.
For those not directly affected by the bill, such as individuals already receiving the full child tax credit per child or those without qualifying dependents, filing now is advisable.
For others, the decision depends on individual circumstances. Filing now might mean the IRS will need to adjust your return later, while waiting could ensure your return reflects the new rules but may delay your refund. Once again, the IRS Commissioner recommends filing now.
Stay informed and consider your options carefully.
- Teaching Lesson – Teaching lesson plans related to this lesson.
Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.