110 - NEW Tax Updates Tax Relief for American Families & Workers Act of 2024 Wealth Game

In this episode, I discuss potential tax updates outlined in the Tax Relief for American Families and Workers Act of 2024. These updates include changes to tax credits, business limitations, bonus depreciation, and more. I provide important information and recommendations for business owners, as well as insights into how these updates may impact individuals. Watch the video to stay informedand take necessary actions based on the proposed changes.

9 Key Updates: Tax Relief for American Families and Workers Act of 2024 

Child Tax Credit Expansion: Increases the refundable portion of the Child Tax Credit for 2023-2025. Amounts per child will rise from $1,600 in 2023 to $1,800, then to $1,900 in 2024, and $2,000 in 2025. The calculation method for the refundable credit is also revised.
Adjustments for Inflation and Earned Income: The Child Tax Credit will adjust for inflation from 2024 and includes changes in the rules for determining earned income.
Research and Experimental Expenditures: The start of the five-year period for deductions in this area is postponed from 2023 to 2026.
Increased Limitations on Business Expenses: Extension and increase in limitations related to the depreciation, amortization, or depletion for business interest determination, and expensing of depreciable business assets.
Changes to Employee Retention Tax Credit (ERTC): The filing deadline for ERTC claims is moved up to January 31, 2024. The agreement proposes increased penalties for fraudulent activities associated with the ERTC, with significant financial consequences for non-compliance.
Enhanced Penalties for ERTC Promoters: For those aiding in false ERTC claims, penalties increase to the greater of $200,000 ($10,000 for individuals) or 75% of the income derived from such activities. Promoters face a $1,000 penalty for each instance of failure in due diligence regarding a taxpayer's eligibility for the credit.
Disaster Relief and Housing Initiatives: Extensions and exclusions in rules for disaster-related personal casualty losses, and initiatives to promote affordable housing, including specific provisions for the East Palestine, Ohio train derailment.
US-Taiwan Tax Treaty: Incorporation of a tax treaty between the United States and Taiwan.
Extension of 100% Bonus Depreciation: This benefit, which expired at the end of 2022, will be extended until the end of 2025.

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