There are late changes to the 2023 tax law which propose to help families who are filing their 2023 tax returns but the legislation hasn’t become law yet. The Tax Relief for American Families and Workers Act is a retroactive tax law change that provides only two practical benefits; an increase/expansion to the refundable portion of Child Tax Credits, and an adjustment to Bonus Depreciation for business owners.
The law itself “Talks the Talk” that it will help everyone in the USA but sadly it doesn’t Walk the Walk. These minor changes may cause problems later with tax returns being filed before the laws take effect.
IRS Commissioner Danny Werfel said, “We urge and encourage taxpayers to file when they’re ready. Don’t wait on Congress. If there’s a change that impacts your return, we will make the change, and we will send you the update whether it’s an additional refund or otherwise without you having to take any steps.” If any passed legislation impacts your tax return you’ve already filed, that means you theoretically have the option of waiting an undetermined amount of time for the IRS to fix the return, or you’ll need to file an amended return.
Our only agreement with the IRS point of view is that if you don’t have dependents to claim on your tax returns, you should file as soon as possible.
If you have dependents, our recommendation is to wait to file your tax returns.
I am here to help you. If you have questions, call me directly, Anthony Imbimbo CPA, at 619-497-1040