Tax Relief Now: Families and Workers to Benefit from Landmark Legislation
In today’s fast-paced world, navigating taxes and finances can be overwhelming. The 2024 Tax Relief Act introduces significant changes to help alleviate this burden. This comprehensive guide breaks down the new tax benefits, explaining how they can support families, workers, and businesses.
Expanded Child Tax Credit (CTC): More Relief for Families
The CTC has been enhanced to provide:
- Increased refundable amounts: Up to $1,900 per child in 2024, rising to $2,000 in 2025, adjusted for inflation.
- Higher income limits: More families with moderate incomes are now eligible.
- Prior-year income option: Use previous year’s income to calculate CTC, helping those with fluctuating incomes.
Boosted Earned Income Tax Credit (EITC): Support for Low- to Moderate-Income Workers
The EITC has been expanded to:
- Allow flexible income calculation: Choose between 2023 or 2024 income for 2024 and 2025.
- Broaden eligibility: More workers with slightly higher incomes can now qualify.
American Opportunity Tax Credit (AOTC): Easing Education Expenses
The AOTC now:
- Covers course materials like textbooks and supplies.
- Offers partial refundability: Up to $1,000, even if you owe no taxes.
- Allows claims for up to four years of college education.
Business Incentives for Growth and Innovation
The 2024 Tax Relief Act offers:
- Extended depreciation allowances: Deduct full cost of certain assets in the year of purchase.
- Support for research and development: Delay deducting costs until 2026.
- Expanded small business provisions: Increased Section 179 deduction limits.
Disaster Tax Relief: Supporting Recovery
The Act provides:
- Special deductions for affected areas.
- Faster depreciation for damaged property.
- Tax-favored withdrawals from retirement accounts.
Maximize Your Benefits: Take Action
- Check eligibility for expanded credits.
- Plan for educational expenses.
- Leverage business incentives.
- Utilize disaster relief provisions.
- Consult a tax professional.
Get Expert Guidance with Global FPO
Our experts will help you navigate the 2024 Tax Relief Act, ensuring you take full advantage of every opportunity to save.