Child tax credit gets extended, while higher education tax breaks receive approval
The House Ways and Means Committee approved expanding the child tax credit and higher education tax breaks. In other tax news, H&R Block offers a map outlining state income tax requirement to help same-sex couples' IRS filings.
The House Ways and Means Committee approved expanding the child tax credit and higher education tax breaks. In other tax news, H&R Block offers a map outlining state income tax requirement to help same-sex couples' IRS filings.
The House Ways and Means Committee approved an expansion of the child tax credit.听A party-line vote approved changes to the听Child Tax Credit. The proposal would index the credit to inflation and increase the phaseout range for joint filers to $150,000, twice the range for single filers. The听effort would cost听$114.9 billion over 10 years and is not paid for with budget offsets.
Ways & Means also approved higher education tax breaks.听The Committee听voted along party lines for听an expansion and simplification of听higher education tax breaks. Available to married couples with annual income under $180,000, it provides a higher education tax credit of $2,500, with up to $1,500 refundable. The proposal would add听$96.5 billion over 10 years听to the deficit.听
Speaking of debt:听A Brookings Institution听study released this week听notes that typical student loan borrowers aren鈥檛 any worse off than those in their parents鈥� generation. About 25 percent of the听increase in student debt听since 1989 comes from Americans pursuing more education, especially graduate degrees. Average lifetime incomes of college graduates have more than kept pace with increases in student debt load. And student loan borrowers鈥� monthly payment burden has stayed about the same over the past two decades.
Surprise: Less money and more work weakens IRS service and enforcement.听The Center on Budget and Policy Priorities听confirms that as a result听of budget cuts, the IRS has reduced its workforce, investments in employee training, and upgrades to information technology systems. But, it鈥檚 also taken on additional responsibilities under the听Affordable Care Act听and the听Foreign Account Tax Compliance Act. Doing more with less is an IRS reality, but it鈥檚 hard to imagine that it鈥檚 a sustainable one.
On the Anniversary of DOMA鈥檚 Repeal:听The Tax Institute at H&R Block offers听a map of the patchwork of state income tax听requirements since the repeal of the Defense of Marriage Act. TPC鈥檚 Bob Williams explored听same-sex couples鈥� IRS filing complexities here. The US Supreme Court declared听one year ago today听that same-sex couples married in states where it is legal must receive the same federal health, tax, Social Security and other benefits that heterosexual couples receive.