Bipartisan Tax Bill Boosts Child Tax Credits and Business Breaks: What You Need to Know About the $79 Billion Tax Cut Package

A new bipartisan tax bill recently passed, bringing a $79 billion tax cut package that expands the child tax credit for American families. While it offers benefits for parents and business owners, not everyone can take advantage of the changes. The legislation, negotiated by Representative Jason Smith and Senator Ron Wyden, is expected to impact 16 million families.

Bipartisan Tax Bill Boosts Child Tax Credits and Business Breaks: What You Need to Know About the $79 Billion Tax Cut Package

Revamped Child Tax Credits: The Lowdown on the Latest Tax Cut Package and What Families Need to Know

The tax cut package is aimed at enhancing child tax credits and reinstating crucial business tax breaks. Families eligible for the tax credit could receive amounts ranging from $1,800 to $2,000 based on specific factors. The bill, if approved by the Senate, will not reach the level of the increased pandemic-era child tax credit. Instead, it proposes raising credits to $1,800 per child in 2023, $1,900 in 2024, and $2,000 in 2025, with adjustments for inflation in the latter years.

However, it’s essential to note that individuals can only benefit from the tax credits if they are already receiving them, and only children with social security numbers are eligible. Unfortunately, undocumented immigrants are not covered by the bill.

READ ALSO: 2024 Child Tax Credit Expansion: House Passed $78B Tax Package For Children In Low-Income Families

Bipartisan Tax Bill Unleashes Boost for Businesses and Families: A Deep Dive into Tax Breaks, Trade Support, and Economic Resilience

The legislation extends its impact beyond families, also benefiting businesses. It aims to bolster three tax breaks for businesses, providing an extension of tax breaks through 2025 and introducing benefits to support trade with Taiwan. Furthermore, businesses gain flexibility in determining deductible borrowing amounts. The bill also addresses natural disasters, creating tax benefits for affected individuals and strengthening the low-income housing tax credit, potentially adding around 200,000 housing units nationwide.

In conclusion, the bipartisan tax bill brings significant changes, enhancing child tax credits, supporting businesses, and addressing broader economic issues. While it awaits Senate approval, its potential impact on families and businesses makes it a crucial development in current tax legislation.

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