Earlier this year, the House passed a $78 billion tax bill that could likely increase the childe tax credit.
Under the bill, we could see it raise the maximum refundable tax break to $1,800 per child for tax year 2023, according to WWLP. That account for an increase from $1,600 previously.
That limit would see raises again in the 2024 and 2025 tax year, and if the bill does pass then the families could claim the expanded benefit for the 2023 tax year as well and, should it pass within the next few weeks, could see an average $680 break this tax season.
“Our recommendation is, and the IRS’s recommendation is, that you go ahead and file and get whatever refund that you may have before the change in process, and if there is a bill passed, the IRS has the mechanism to send the money directly” Ray Maagero of Liberty Tax advised during the article.
New York Senator Samra Brouk believes that the bill would take the weight off a number of familiaes that are struggling, especially in today’s workforce.