Inflation Reduction Act - Dependent Reduction

Hi @hinal1905 - the Inflation Reduction Act is definitely aimed at middle to lower income families.  There is no Dependent portion to it though.  The 2021 $3000-$3600 Child Tax Credit is still temporary and will go back to $2000 per child for 2023 for now.  

 

The tax rates for 2022 are lower than for 2021 and the standard deduction will increase. These will have the impact of lowering your taxes but, just marginally. You would be eligible for credits on energy saving vehicles or installations to your home.  

 

These are the primary areas that the new Inflation Reduction bill could affect your family:

Clean Vehicle Credit

Energy Credits on Home

Solar Energy Credits

Extended Affordable Care Health Care Subsidies

Caps on Medicare out-of-pocket expenses for prescription drugs

Corporate Tax Changes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/energy-tax-credits-deductions/inflation-reduction-act-2022-mean-taxes/L0gH6wS3E_US_en_US

https://proconnect.intuit.com/taxprocenter/tax-law-and-news/what-you-need-to-know-about-the-inflation-reduction-act-of-2022/

 

And this is regarding the Student Loan Forgiveness Program:

https://proconnect.intuit.com/taxprocenter/tax-law-and-news/student-loan-debt-relief-and-what-it-means-for-your-clients/