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So frustrating to have this come up at the last minute, since the folks the child tax credit will help are the the ones who like to file right away, because they need the refunds.

The 5 year amortization of R&D costs is pushed out in that bill as well. Wonder if Apple and some of the other giant tech companies and drug companies are lobbying hard in an election year for these changes. I am sure they will take this all the way to Jan 28th which for some dumb reason congress thinks is the deadline for getting these provisions into the tax code giving the IRS 1 day to update their computers and the software companies 1 day to update so e-file can start on the 29th. Dumb and Dumber in Washington DC... And I was so looking forward to a "normal" tax season this year. But I guess I got it because there is no "normal" anymore so "not normal" is the new normal. Tom Longview, TX

Even if passed, it won't affect the majority of returns with CTC. Only those that have the refundable part limited due to income or maxing out the 1,400 https://gop-waysandmeans.house.gov/wp-content/uploads/2024/01/BILLS-118hr7024ih.pdf

This is an older client. We efiled his return in March of last year. He had 2 1099Rs last year for 30K and 40K. IRS sent him letter CP2057 "you may need to amend your return" letter. IRS says they are missing. They clearly show up on front page of 1040 on lines 4a and b and 5a and b. I don't even know how to respond to this. "Dear IRS - did you look at the return? Please see lines 4 and 5." Good grief. What a PITA.

Copied from the website of Current Federal Tax Developments: "Tax Relief for Working Families This title encompasses provisions aimed at expanding the refundable portion of the Child Tax Credit, as specified in IRC §24. The following changes would be made to the Child Tax Credit under the bill. Per-Child Basis Calculation of Maximum Child Tax Credit. The maximum amount of the child tax credit that can be refunded would be determined by multiplying the earned income of the taxpayer exceeding $2,500 by 15% and then multiplying that result by the number of qualifying children. At present, the number of qualifying children does not affect the calculation of the maximum refundable child tax credit. This provision would be in effect from 2023 to 2025. [Act Section 101] Aggregate Restriction for Refundable Child Tax Credit: In addition to the aforementioned cap, the maximum reimbursable child tax credit is further bounded by a fixed monetary sum per child, which is currently set at $1,600 per child, as per the existing law. The bill proposes to elevate the maximum reimbursable amount per child to $1,800 for 2023, $1,900 for 2024, and $2,000 in 2025, along with an inflation modification for 2024 and 2025. [Act Section 102] Inflation Adjustment. The amount of the child tax credit, which is currently set at $2,000, would be indexed to inflation for the years 2024 and 2025, with the result rounded down to the nearest $100. [Act Section 103] Election to Use Prior Year’s Earned Income. Taxpayers will have the opportunity to participate in an election in 2024 and 2025 to utilize the earned income from the preceding year when calculating the child tax credit. This election is available if the taxpayer’s earned income in the current year is lower than the earned income in the previous year. [Act Section 104] IRS to Attempt to Automatically Issue Refunds to Early 2023 Filers. The implementation of these proposed legislative amendments, should they be enacted, would occur, at best, several weeks into the year 2024. Consequently, a substantial number of taxpayers, particularly those anticipating a tax refund, will likely file their tax returns before the Internal Revenue Service (IRS) is prepared to process returns claiming the revised Child Tax Credit. In order to address this issue, Section 105 of the Act stipulates that, to the greatest extent feasible, the IRS must recalculate the Child Tax Credit based on the aforementioned amendments and any information provided by the taxpayer. In the event that this recalculation results in a refund, the agency is obligated to issue said refund or credit as expeditiously as possible."

I keep reading articles that says that Congress will "pay" for these credits and deductions by pulling money from the ERC program. I wonder what that will entail? Deny all claims? Put a shut off date for claims in place? Audit the ones already completed and try to claw back? Something else? Tom Longview, TX

checked already. also double checked it was the correct year. and one is a pension and one is an IRA and they are coded correctly.

If this bill becomes law, hopefully the IRS will handle it like they handled the early filers with Unemployment Compensation in their returns several years ago. The IRS did not require amendments and the IRS handled the tax recalculations internally and refunded the tax overpayments in the late summer and early fall of that year.

And, whose fault is that? Generally, if I ever need support, I just call my Sales Rep and she gets me to someone. With this board, however, that is very seldom.

This increase is part of the potential agreement for another Continuing Resolution to avert the looming government shutdown on January 19. "If Congress reaches a deal on the child tax credit by Jan. 29, lawmakers say eligible families could benefit as soon as next month. That’s because the credit would be available for the 2023 tax year (for tax returns filed early in 2024). However, the expansion, if it does happen, won’t reach as far as it did under President Joe Biden’s American Rescue Plan. Here are some of the possibilities Congress is discussing: Ensuring families with the lowest incomes will qualify for the credit by removing the minimum taxable income threshold Allowing families to submit prior year tax returns to claim the expanded credit Increasing the refundable portion of the child tax credit None of the above possibilities are official, and the details could change as Congress continues to discuss the matter. However, families with the lowest incomes would likely benefit the most." Just what we need another last second change in tax law