Tax Relief for American Families and Workers Act of 2024
We would like to provide you with a summary of the Tax Relief for American Families and Workers Act of 2024 and its potential impact on your taxes. Summary of the Tax Relief for American Families and Workers Act of 2024: While this bill is still under consideration in Congress, it contains several provisions that could have a significant positive impact on individuals and families’ tax situations. Some key highlights of the proposed bill include: What is Not Included….but Could Be?One glaring omission from this bill is any language pertaining to the removal of the very unpopular SALT (State and Local Taxes) Cap. This cap most notably cuts off property taxes when itemized at10,000, and requires any amount above this to be carried forward. For clients in high-cost-of-living areas, this removes potentially significant tax savings. There have been a few comments from Congress about this, but nothing set in stone quite yet. Fingers crossed that this gets included somewhere in the bill. Speculation on Tax Year Impact:While the exact effective date of the Tax Relief for American Families and Workers Act of 2024 is not confirmed, Congress is potentially targeting tax year 2023 for some (or all) of these potential changes. This explains the rush to get this passed before the January 29th2024 e-file opening day, which unofficially kicks off tax season. However, please keep in mind that legislative timelines can be subject to adjustments during the legislative process. Disclaimer:The information provided is based on proposed legislation and is subject to change. It is essential to keep in mind that this bill is currently in the legislative process and has not become law. Therefore, this information should not be considered formal tax advice. Taking credit for David’s hard work, Saad Abbas, CPA
