At the beginning of March 2023, President Biden’s proposed budget for 2024 includes a plan to renew and expand the child tax credit, a policy that has gained popularity and bipartisan support. The child tax credit expansion was introduced as part of the American Rescue Plan in 2021 and has been credited with providing critical financial support to families with dependent children during the COVID-19 pandemic.
If the budget proposal passes, the current maximum credit of $2,000 per child would be raised to $3,600 for each child under age 6 or to $3,000 for each child ages 6 and up. That’s a big increase! The budget also proposes making the child tax credit fully refundable, meaning that people could still be eligible for the credit even if they don’t owe any taxes. This could make a huge difference in the lives of families who are struggling right now all across the country.
President Biden’s proposed 2024 budget plan includes the revival of monthly child tax credit payments in 2024. Here are some of the highlights of the proposed budget plan:
Expansion Of The Child Tax Credit
Under the American Rescue Plan, eligible families received up to $3,000 per child aged 6 to 17 and $3,600 per child under 6 through the expanded child tax credit. The credit was made fully refundable and payments were made in advance on a monthly basis from July to December 2021. The proposed budget plan aims to continue the expansion of the child tax credit beyond 2021 and provide monthly payments to families in 2024.
The proposed expansion of the child tax credit also incorporates the IRS Fresh Start Program, which provides tax relief for taxpayers struggling with back taxes and other tax-related issues. The program allows taxpayers to set up payment plans, request penalty relief, and negotiate settlements. By incorporating this program into the proposal, the Biden administration aims to provide additional support to families struggling with tax-related issues, further enhancing the credit’s impact on families and children.
Making The Expanded Child Tax Credit Permanent
As part of his budget proposal for 2024, President Biden has called for an extension of the expanded child tax credit through 2025. However, it is not clear whether this expansion is intended to be permanent. The proposal, which was released in March 2023, does not include any language that would make the expanded child tax credit permanent beyond 2025. It is important to note that budget proposals are subject to change as they go through the legislative process, and final decisions on the child tax credit expansion will ultimately be made by Congress.
As such, it is possible that the final legislation could include changes to the length or permanence of the expanded child tax credit. It’s worth noting that the IRS Fresh Start Program, which helps taxpayers who are struggling with tax debt, has not been directly related to the child tax credit expansion at this time. However, it may still be a valuable resource for those who are facing financial difficulties and looking for help with their tax obligations.
Biden’s Budget Proposal In 2024 Conclusion
President Biden’s proposed 2024 budget plan includes several policies aimed at supporting families and reducing child poverty, including the revival of monthly child tax credit payments. These policies, along with other measures such as the IRS Fresh Start program, could have a significant impact on families and children across the United States, providing critical financial support and relief to those in need. The IRS Fresh Start program is designed to help taxpayers who are struggling to pay their taxes by providing more flexible payment options and reducing penalties and interest charges.
However, the proposed budget plan is likely to face opposition from some lawmakers who are concerned about its potential cost and impact on the federal budget deficit. It remains to be seen whether the proposed policies, including the revival of monthly child tax credit payments and the IRS Fresh Start program, will be passed into law and implemented in 2024.
The IRS Fresh Start Program consists of 4 main programs that are accessible to taxpayers who owe much more than they can reasonably afford to pay. The four major programs are as follows: Currently Not Collectible (CNC) Offer In Compromise (OIC), Installment Agreement (IA), and Penalty Abatement (PA).
These relief programs from the IRS Fresh Start Program allow qualified taxpayers the option to reduce or even eliminate their tax debts. These tax experts will help you qualify for the program and help you figure out which options will give you the most suitable outcome. Especially if the agreed amount from the installment agreement that you’ve previously set up with the IRS is a bit harder to pay off these days. It is very important for taxpayers to remain tax compliant because it will save you interest and penalties on the current year and prevent you from a continuous circle of always owing tax.
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Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
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