Expanded Child Tax Credit Could Be Here Soon, But IRS Says Don’t Wait To File
Written by
Adam Palasciano
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Families are poised to see additional tax relief this season, via expanded Child Tax Credits, if Congress can get its act together fast.
Michigan Advance reported that The Tax Relief for American Families and Workers Act received overwhelming support and passed in the U.S. House last month in a 357-70 vote. Currently, the bill is waiting for a Senate vote.
To that end, IRS Service Commissioner Danny Werfel testified before Congress, ensuring the tax-writing U.S. House Committee on Ways and Means that the IRS would be able to implement the tax credits in time for taxpayers to benefit this tax season.
“We may be able to start implementations (as) as early as six to 12 weeks after passage, depending on the bill’s final language, but taxpayers should not wait for this legislation to file their returns. We will take care of getting any additional refunds to taxpayers who have already filed. They won’t need to take additional steps,” Werfel said in his opening remarks.
Taxpayers will not be required to file additional or amended returns for the IRS to implement the expanded Child Tax Credit for those taxpayers who qualify.
Benefits Of The Expanded Child Tax Credit If Passed
If passed, the legislation would expand the child tax credit by incrementally raising the refundable portion cap. This would mean larger refund checks for families with kids. The increases would be $1,800 to $1,900 to $2,000 each tax year from 2023 to 2025.
The IRS is closely monitoring Congress’ actions as it relates to the passage of this crucial legislation. Currently, it remains unclear when or if the bill will pass in time for the deadline to file 2023 tax returns, which is Monday, April 15, 2024.
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