IRS Commissioner Danny Werfel announced the agency’s readiness to swiftly implement any approved changes to the child tax credit, ensuring quick distribution of tax refunds that could benefit qualified U.S. taxpayers with additional funds this tax season. This commitment came during a congressional hearing, addressing the potential impact of the Tax Relief for American Families and Workers Act, which remains pending in the Senate despite passing the U.S. House in January.
The IRS has projected a six to twelve-week timeframe for enacting these changes upon approval, with Werfel emphasizing efforts to expedite the process to the shorter end of this range. The modifications under discussion stem from the Act’s aim to adjust the child tax credit calculations, potentially increasing the refundable amount per child for the tax years 2023 through 2025. This initiative reflects a significant effort to support American families by enhancing the child tax credit’s benefits.
Despite the current version of the child tax credit being less expansive than its 2021 American Rescue Plan Act predecessor, the proposed revisions under the Tax Relief for American Families and Workers Act could still offer substantial aid to qualifying families. Key changes include altered calculation methods for the credit and increased maximum refundable amounts per child, demonstrating a proactive approach to adapting tax relief measures to meet the evolving needs of U.S. taxpayers.
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