ENHANCED CHILD TAX CREDIT BILL
As of now, the child tax credit for 2023 is still $2000, with a refundable “additional child tax credit “ amount of up to $1600.
No one here knows if or when the proposed enhanced child tax credit bill will pass. It has gone through the House of Representatives and is now in the Senate—where 100 senators will decide whether to pass it. It has not been passed or signed into law. IF and when it passes, we do not know when they will make it effective or how it will be implemented. They are still wrangling with it so we do not know what it will look like when they are done.
It is unlikely to affect your 2023 return; maybe enough members of Congress remember what a mess they created when they changed the tax law for taxing unemployment during the 2020 tax filing season in 2021 and will not want to do that to the U.S. public again in mid tax season. Or maybe they will go ahead anyhow. We do not know. But if it affects you for 2023 they will have to provide a way for you to get the credit. Changing the tax forms and formatting them for tax software is a very complex process, so expect it to take a long time for them to sort it out if they even pass the bill.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
