(LLP) – In a significant move to bolster the economy and provide financial relief, Congress has passed the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024). This comprehensive legislation is designed to support American families, workers, and businesses through a series of tax incentives and adjustments.
Enhanced Child Tax Credit
One of the key provisions of the act is the expansion of the Child Tax Credit. The refundable portion of the credit will increase over the next few years, with the maximum amount per child rising to $1,800 in 2023, $1,900 in 2024, and $2,000 in 2025¹. This adjustment aims to provide more financial assistance to families, helping them cope with rising living costs. Additionally, taxpayers will have the flexibility to use prior year earned income to calculate their earned income tax credit for 2024 and 2025².
Business Tax Relief
The act includes several measures to support businesses and promote economic growth. Notably, it allows businesses to immediately deduct research and experimentation expenditures, encouraging innovation and development². The legislation also extends 100% bonus depreciation through 2025, enabling businesses to fully expense qualified property². Furthermore, the deduction limit for qualifying property under Section 179 is increased, providing businesses with greater flexibility in deducting investment costs².
Support for Small Businesses
Small businesses stand to benefit significantly from the new act. Adjustments to the filing thresholds for 1099-MISC and 1099-NEC forms will simplify reporting requirements². Additionally, the act accelerates the end of the COVID-era Employee Retention Tax Credit, aiming to save taxpayers over $70 billion².
Increasing Global Competitiveness
The legislation also includes measures to deepen economic ties between the United States and Taiwan, promoting global competitiveness³. This aspect of the act is expected to enhance trade relations and create new opportunities for American businesses.
Conclusion
The Tax Relief for American Families and Workers Act of 2024 represents a significant step towards fostering a healthier economy and creating greater opportunities for all. By expanding the Child Tax Credit and offering various business tax incentives, the bill aims to alleviate financial burdens and stimulate economic growth.
As the nation navigates economic challenges, this legislation provides a crucial lifeline for families and businesses alike, ensuring a more stable and prosperous future.
¹: [Congress.gov]
²: [Thomson Reuters]
³: [Wikipedia]
Source: Conversation with Copilot, 7/5/2024
(1) H.R.7024 - Tax Relief for American Families and Workers Act of 2024.
(2) Understanding the Tax Relief for American Families and Workers Act of 2024.
(3) Tax Relief for American Families and Workers Act - Wikipedia.
(4) Breaking down the Tax Relief for American Families and Workers Act of 2024.
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