Possible Tax Breaks for Parents and Businesses in the Works

Congressional tax leaders have reached a tentative agreement that would temporarily expand the Child Tax Credit and loosen restrictions on several popular business tax breaks. In total, the plan represents about $80 billion in tax breaks.

At this time, the deal is only tentative, and faces the normal hurdles that come with passing legislation of this scope through both chambers of Congress and getting it to the President’s desk for his signature. Importantly, the IRS has announced they will begin accepting returns for tax year 2023 on January 29, 2024. It’s not clear whether this deal can be finalized before the 2024 filing season begins.

The tentative plan pays for the proposed credits primarily by closing the troubled Employee Retention Credit program earlier than it was originally intended to last, and by cracking down on unscrupulous promoters who encouraged businesses to file overzealous ERC claims.

Schreiber Accounting and Advisory is constantly monitoring tax legislation changes, and stands ready to help clients take advantage of opportunities for tax savings when they present. Check out the firm’s Tax Preparation and Planning services, and contact the firm for more information.

Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.