- ORIGINAL NEWS
Bipartisan tax deal could boost child tax credit for 2023. What it means for families this tax season
- SUMMARY
A bipartisan tax agreement was announced recently, proposing boosts to the child tax credit for 2023, which will affect tax filing.
This plan aims to expand access, increase the refundable credit, and add future inflation adjustments.
Retroactive to 2023, the maximum refundable credit would increase from $1,600 to $1,800 for that year, reaching $1,900 in 2024 and $2,000 in 2025, with adjustments for inflation.
Refundable credit eligibility would also be expanded for larger families, allowing them to benefit more.
There’s urgency to enact this legislation before the tax season opens on January 29, considering its potential impact in alleviating childhood poverty, which surged in 2022 after pandemic relief expired.
However, the plan faces potential hurdles, given the limited vehicles to pass legislation and other legislative priorities looming.
With fiscal year 2024 deadlines approaching and the possibility of a partial government shutdown, passing this tax agreement as a stand-alone bill might be challenging.
It could potentially take a backseat or be sidelined in favor of other concerns.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Senior lawmakers on Tuesday announced a bipartisan tax agreement that includes boosts for the child tax credit for 2023, which could affect taxpayers this filing season.”
“If enacted, the plan would broaden access, increase the refundable credit and add future inflation adjustments.”
Negative
“But the proposed legislation could still face hurdles, experts say.”
“There are limited vehicles to pass the legislation and passing a stand-alone bill could be more challenging amid other priorities.”