It feels a little silly to return in a blog post about something that quite likely will not come to pass, but it feels needed. I am referring to the Tax Relief for American Families and Workers At that passed the House of Representatives on January 31 but is currently stalled in the Senate.
The bill is not being ignored, though. Last week, IRS Commissioner Danny Werfel was part of a hearing when he was asked about the potential for the bill’s passage, and his answers echo much of what I wrote on this a couple of weeks ago. So, I figured it was worth addressing some highlights. First, Werfel estimated that it would take the IRS six to 12 weeks to implement the changes if the bill was passed. Even if this were passed immediately, that short window already pushes things into April. So, you would have to be betting on both the Senate (which is not) and the IRS (which traditionally doesn’t) working very quickly to make it worth holding off on filing your taxes because of this. Second, Werfel stated that only 10% of households would see adjustments to their tax returns due to changes in the Child Tax Credit. This means that if you are unsure if this would even affect you at all, it likely won’t. Furthermore, if you file early, it is not as if you will miss out on getting the extra credit. It will still be applied to your existing return. The advice after this is still to not wait on moving forward with your taxes. So many people start to think about tax season when the calendar turns to the new year and at that point April 15 sounds far away. On January 1, though, you are still about a month away from receiving all the forms you will need for even most basic returns. And now we are rapidly approaching the end of February, so we are only looking about having seven weeks to go before the deadline. This time goes by fast and it is easy to hear about possibilities about why you may want to wait, but there is rarely anything concrete to be gained by doing so. And many times, even those potential reasons fade away. So keep on top of things while you still have the chance to be proactive and not feel the weight of a tough deadline push. Warmly, Josh Bousquet Connect to Us ~ Facebook ~ Twitter To ensure we don't make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
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