Tax Relief is the American Dream

The Tax Relief for American Families and Workers Act of 2024 was passed earlier this year. A resulting change for individuals is an upgrade to the child tax credit. Under the new provisions, the refundable amount is calculated per child. To break this down further, earned income over $2,500 will be multiplied by 15% which will be multiplied per child. This calculation becomes the total refundable amount. On top of that, the maximum amount for this refundable credit will be increased by $100 every year until 2025. Taxpayers can also choose to calculate the refundable credit using earned income from the prior tax year if it is less than the current year.

Businesses are also expected to gain some tax relief from the Tax Relief for American Families and Workers Act of 2024. One change will be an increased 179 deduction. Businesses can choose to expense qualified property instead of depreciating the property. This type of deduction will be limited to $1.22 million in 2024 and is reduced when the expense surpasses $3.05 million. This limit is increased to $1.29 million with an expense limitation of $3.22 million for property placed in service in 2024. The new provisions also allow for depreciation, amortization, and depletion to the carve-out when calculating the adjusted taxable income for the tax years between 2023 and 2026. These are just a few of the changes being brought to taxpayers through the Tax Relief for American Families and Workers Act of 2024