You might want to hold off on rushing to file your taxes for now. Congressional leaders are close to a $70 billion bipartisan deal. Included in this deal is a focus on expanding the child tax credit and providing tax breaks for businesses until 2025. The target completion date for the deal is Jan. 29, aiming for filing season benefits. The business breaks include reviving some 2017 Trump tax cut policies, benefiting research and development, interest deduction, bonus depreciation, and small-business expensing. A rare bipartisan effort in a divided Congress with aligned incentives – Democrats pushing for an expanded child tax credit, and Republicans seeking to support business allies. Some holdups involve Democratic housing provisions and Republican concerns about tax issues related to natural disaster cleanup.
We will have to hold our breath to see if this actually passes and await further updates. Have questions about the child tax credit? Reach out and schedule an appointment with us/