New tax law, if passed, increases Child Tax Credit amount;
2022 extensions due Feb. 15 for all or parts of 8 states due to natural disasters
🐝News on the Child Tax Credit (as of Feb. 1)
Late on January 31st, it was announced one house of Congress passed a bill to increase the Child Tax Credit. If passed by the Senate and approved by the President, the bill would expand access to the child tax credit, or CTC, and retroactively boost the refundable portion for 2023. This means taxpayers who have already filed will receive an additional payment if they are due an additional amount, and no action would be required on their part.
According to the Washington Examiner, “The main tax legislation notably expands the child tax credit by changing the calculation of the credit on a per-child basis to make it more generous. It would also increase the maximum refundable amount per child from $1,600 to $1,800 in tax year 2023, $1,900 in 2024, and $2,000 in 2025, a change that will benefit lower-income families.”
The proposed law has not yet been passed, and still required final votes from the Senate and approval from the President. Until this happens, the current rules for the CTC allow a maximum amount per qualifying child as $1,600 in tax year 2023. Have further questions? Send Jessica “The Queen” a message on the Contact Us page.
MARCH 13, 2024 UPDATE —
There has been no progress on this law being passed in Congress. Thus, all rules regarding the Child Tax Credit remain the same as last year. This new law may gain more traction later in 2024 or early in 2025. Key takeaway: there is no “new” child tax credit! Make sure you file before the Monday, April 15th deadline!
🐝Reminder to file 2022 tax return by Feb. 15 (for extensions due to natural disasters)
According to a press release from the Internal Revenue Service, “disaster-area taxpayers who received extensions to file their 2022 returns are reminded that these returns are due on Feb. 15, 2024. Eligible taxpayers were those affected by various disasters that occurred between Aug. 8 and Oct. 9, 2023. This included Hurricane Idalia, Hurricane Lee, Tropical Storm Bolaven, the wildfires in Hawaii, the seawater intrusion in Louisiana and storms and flooding in Illinois.
“For extension filers, payments on these returns were not eligible for the additional time because they were originally due last spring before any of these disasters occurred.
“Locations that qualify for the Feb. 15 filing deadline:
- Forty-nine counties in Florida.
- Thirty-two counties In Georgia.
- All 46 counties in South Carolina.
- All 16 counties in Maine.
- All 14 counties in Massachusetts.
- Cook County in Illinois.
- Five parishes in Louisiana.
- Maui and Hawaii counties in Hawaii.
- Six islands in the Northern Mariana Islands.
- All of Guam.
“The IRS normally provides relief, including postponing various tax filing and payment deadlines, for any area designated by the Federal Emergency Management Agency (FEMA). As long as their address of record is in a disaster-area locality, individual and business taxpayers automatically get the extra time, without having to ask for it. The current list of eligible localities is always available on the disaster relief page on IRS.gov.
“In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records necessary to meet a deadline occurring during the postponement period are located in the affected area. Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers who assisted with relief activities who are affiliated with a recognized government or philanthropic organization.
“For further details, see the IRS disaster relief page, especially the disaster relief announcements for each state and territory. The tax relief is part of a coordinated federal response to the damage caused by these disasters and is based on local damage assessments by FEMA. For information on disaster recovery, visit disasterassistance.gov.”