Jan
A bipartisan group of Senators and Congressmen on Capitol Hill are currently negotiating a bill that includes increasing the Child Tax Credit from $2,000 to $3.6000. A vote on this bill is expected by the end of January and if passed and made retroactive for 2023 the IRS will need to update their forms and systems.
What this means for you
Fortunately, we have processes in place for this exact situation. If you have an appointment scheduled in February to review your 2023 return, please send us your documents by your deadline (which is two weeks before your appointment date). We will prepare your return with the current information available and you’ll have your review appointment with Matt or Ryan. If the bill is passed and your return is affected, we will first notify you of the change and put your return on hold, which just means we’re not going to e-file it with the IRS. As soon as the IRS completes their updates, we’ll reprocess your return and assemble it for you to review and sign. If needed, we’ll check in with clients weekly with updates until your return is filed.
UPDATE
The bill containing changes to the Child Tax Credit has not yet been put to a vote in the Senate. Matt, Ryan and Stacie have reviewed the potential changes to the Child Tax Credit and how that could affect their clients, should the current bill be passed by the Senate and signed by President Biden.
After sitting down and giving further review to the returns currently on hold we feel only a small section of our clients will be affected by this change. Therefore we will finalize returns and we’ll notify clients when it’s ready to review and sign. If the bill is signed into law the IRS will automatically correct your return and issue a refund for the increase in Child Tax Credit.
If we feel your return will be affected, we’ll keep you up to date and will review your return to see if filing separately will benefit you more than filing a joint return.