SPRINGFIELD, Mass. (WWLP) – Earlier this month, the House of Representatives passed a $78 billion tax bill that could increase the child tax credit.
The bill would increase the maximum refundable tax credit per child for the 2023 tax year from $1,600 to $1,800. This limit is scheduled to increase again in the 2024 and 2025 tax years. Households filing 2023 taxes in the coming weeks could claim the expanded credit if the bill passes the Senate soon.
In response to this news, some people are refraining from paying taxes in hopes of receiving this grace period. But Ray Margello of Liberty Tax says it’s better to file your taxes now rather than later.
Maajello told 22News: “Our recommendation, and the IRS’s recommendation, is to move forward and receive as much of your refund as possible before any procedural changes are made. If the bill passes, the IRS would ” Receive the money directly. ”
If the bill passes quickly, households that file their 2023 taxes in the coming weeks could see an average tax cut of $680 this tax season. It’s important to start filing as soon as possible so you have enough time to update all your financial information, especially if you owe money, says Maajero. He says that will give him enough time to get his affairs in order.
Melissa Torres is a reporter who has been part of the 22News team since 2021. Follow Melissa on X @melissatorrestv Check out her bio to see more of her work.
