Potential Changes to Tax Laws
Child Tax Credit Hike: Regardless of Congressional Action- File Your Taxes Now! (PHOTO: Vox)
IRS Urges Prompt Tax Filings Despite Congressional Deliberations
According to CNBC, congress is talking about a big $78 billion tax plan that might change things like the child tax credit. The IRS says it’s important not to wait to file your child tax credit even if Congress hasn’t finished deciding. IRS Commissioner Danny Werfel says it’s better to file soon instead of waiting. Even though we’re not sure if Congress will pass the plan the changes to the child tax credit could really affect how people file taxes in 2023. They might make it easier for more families to get the credit and give them more money back.
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Potential Impact on Taxpayers
If the changes happen families who qualify could get about $680 less in taxes for 2023. But we’re not sure yet if Congress will agree to these changes. Some House Republicans are pushing back because they want to change the rules for how much you can deduct for state and local child tax credit. Tax experts are worried about what to do if the rules change retroactively, especially for people who file their taxes early. But Werfel says the IRS is ready to update things if needed to make sure everyone’s tax returns are correct. They’re planning to update their systems quickly after Congress decides on the child tax credit tax plan.
