Impact on California Families
Uncertainty Surrounding Tax Policies
According to the Sacramento Bee, efforts to make child tax credits and state and local tax deductions bigger are stuck in Congress. This affects lots of California families. Even though the House agreed to give more money through child tax credits and President Biden wants even more the Senate hasn’t moved forward. If Biden’s plan passes, California families could save about $2,980 per child. But it’s not clear when or if this will happen.
The future of state and local tax deductions (SALT) is also unclear. Currently, California families can deduct up to $10,000 for state and local taxes on their federal tax returns. But there’s a debate about making this deduction bigger. Democrats worry that richer people benefit more leaving less for those who need it most. In California, most benefits would go to the wealthiest earners while lower and middle-income California families wouldn’t see much help. As Congress talks about taxes California families wait to see what will happen. California families wonder if the changes will apply to their taxes for 2023. It’s hard to know when there will be an agreement. These decisions affect many California families, so Americans watch closely to see what happens next.
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$2,980 Child Tax Credit Boost & SALT Deduction Uncertainty: California Families Await Congressional Decisions – Check It Now! (PHOTO: CNET)
Californians Await Tax Policy Implications
Furthermore, California families are waiting to see if these changes will affect their taxes for 2023. The uncertainty about when a decision will be made is making everyone nervous. These changes could help California families with their money, especially with child tax credits and deductions for state and local taxes. Americans in California are paying close attention to what happens in Congress hoping for solutions that address their financial worries.
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