Many of President Biden’s proposed tax changes for TYE 12/31/21 affect higher income individuals; some are complex and relate to Estate, Capital Gains and S-Corporation taxes.  However, there are specific areas that will pertain to the more common taxpayer, including –

– Extending the expanded ACA Premium Credit; this is the credit that helps low or moderate income families afford health insurance.

–  Extend the increased Child Tax Credit through 2025;  for each child under the age of 6, this credit was increased from $2,000 per child in 2020 to $3,600. For
children ages 6 to 17, the credit increased from $2,000 to $3,000 per child.  Eligible families may also receive advanced payments on these credits during the
tax year.

–  Permanently make the Child Tax Credit fully refundable (meaning it will not be reduced based upon the amount of tax owed by the taxpayer).

–  Permanently increase the Child and Dependent Care Tax Credit

–  Permanently expand the Earned Income Tax Credit for childless low-income taxpayers.

Stayed tuned for more insights!