STOP: Before You File Your Taxes (2024), WATCH THIS! (Congress announces major tax deal)

so pretty much everybody's waiting to get their tax refund for 2024 which is technically for tax season 2023 right but I got some news hot off the press that you guys you're definitely going to be happy to hear about it's going to make your wallets or potentially make your Wallace just a little bit fatter right and who wouldn't appreciate that with this High inflation that we're dealing with right now before you guys go ahead and follow your taxes you might want to hear this out so yesterday January uh the S the 16th so January 16th 2024 Congress dropped a little bit of a bombshell on us guys and uh basically they've been cooking up this tax deal that could mean a nice little boost for potentially millions of Americans now think tax breaks for parents think tax breaks for businesses think tax breaks and Revitalize child tax credit now you guys remember the child tax credits that we saw during the pandemic right pretty sure most of you guys do remember those now what's going on Catalia what's going on Republic now Michelle Davis if you guys are able to see and hear me okay just drop me a quick comment let me know that I'm good here um so here's a Lowdown on this particular proposal here all right so what we got is uh we got basically the big wigs in the Senate and the house uh tax committees they've pretty much shaken hands on expanding the child tax credit and they're throwing in some sweeteners for business as well cuz here's the thing you know uh if we've know if we've watched anything and paid attention we know that the Democrats are basically for you know tax credits and breaks for families children and and and and the like but the Republicans are more in line with uh tax breaks and keeping taxes low for businesses and for typically higher income earners so the only way that this is going to work is if it's bipartisan so you got to have some tax breaks in there for the parents um um you know for the people for children and of course you need tax breaks in there for businesses in order to get both parties to be able to come to the table and have a deal so basically that's what we're looking at right now so uh basically the big wigs in the Senate and the house tax committees have shaken hands on expanding this child tax credit and they're basically throwing in some sweeteners for the businesses for the business owners the entrepreneurs but it's it's it's a big butt right this Congress or this deal still needs the green light from both chambers of Congress right but it it looks like it has what it's what it needs to make this thing actually happen how many of you guys remember the tax credits that were sending out monthly uh checks out to uh people last not last year like two years ago I think it was something like I want to say it was like a like $500 a month or2 $250 a month basically it was like $3,600 a year in child tax checks that were going out to to parents and they were talking about making it a permanent tax credit um those are back in the day back in the stimulus check days I don't know how many of you guys remember that and the you know they were the uh inflated unemployment checks that were going out what's going on Darlene thank you for confirming you can see me Republic now uh we got Erica B in the house thank you very much I got fa and fo uh Reena Jordan what's going on appreciate you guys Fay King Kelly uh Murphy thank you so much I really appreciate you guys how you guys doing today uh let me know how you guys are doing in the comments um but basically the impact on families and businesses is this right if this thing goes well if this thing goes through we are literally talking about up to $2,000 per kid by 2025 for families with multiple kiddos you know this could be a game changer and here's the thing guys there we're actually looking at stuff that could actually hit our bank accounts this year like they're talking about retroactive um making this uh retroactive I'm going to go go into that into the details later in this video you guys are definitely going to want to hear about that um but again you know not just businesses not just families um excuse me not just not just families but also businesses um are basically uh looking at getting some of these juicy tax breaks now you know hopefully you didn't file your taxes yet uh it's only the 17th of January it's only January 17th so most people probably let me know if you got your W2s yet anybody get your W2s yet cuz you're not going to go file your taxes until you get your w twos and how much you think you're going to get back uh most people most people should typically expect a tax refund some people are going to owe taxes I'm G owe taxes I already know it um but anyway uh that's another story but imagine you know you're running a small business you're struggling to keep up with all of your expenses and then you know these proposed tax breaks could mean the difference between just kind of scraping by and then all of a sudden you're thriving right um so let's look at the broader impact here right you know it's not just about the extra cash it's about reducing child poverty remember the reports came out and they were talking about how um how many children had come out of child poverty during like 2020 and 2021 when they were mailing out stimulus checks um so just think about how many people could come out of poverty you know especially folks on Social Security SSI SSDI you know fixed income individuals would likely love to come out of poverty uh for you know basically anybody who's probably looking at Social Security as their uh primary source of income uh is probably not doing all that well um because Social Security is so minimal but anyway let's get back to this right so um you know this could also you know not only reduce child poverty but also kind of help to give businesses a leg up and you know even believe it or not you know kind of make a make it like a diplomatic move toward you know the the Taiwan uh toward Taiwan with the tax treaty um but of course you know in our current political circus that we're dealing with you know nothing's ever smooth sailing so I don't want to get you guys' hopes up but I do want you to understand what's coming down the pipeline and what looks like um uh is is uh likely to come in to become a reality for us but you know there's a bit of a you know Tiff about you know whether this deal leans too much toward Corporation and leave some of the kids in the dust so with that being said uh the time is ticking tax season's right around the corner but if that is the case we could theoretically possibly see uh the Democrats go back to the Republicans and say Hey you know uh you guys are taking care of the businesses a little bit more than you're taking care of uh you know families how about we do this I'll go ahead and give you your business tax credits but we got to bump this $22,000 um you know tax credit up for for families uh this $2,000 tax credit we need to bump that up to $3,600 the way it was years ago how does that sound you know and so you know again you know it's basically it's like going into a car dealership not paying sticker negotiating back and forth on the price and then walking out with a deal that both parties can agree to right so you know so what can you do right now right well number one you can hold off on folling your taxes right definitely don't want to miss out on uh you know uh BAS basically uh what do you call it you don't want to miss out on your tax deals and discounts that could be due to you I definitely wouldn't want to do that right um but make sure your tax professional is aware of what is going on here right so here you got uh the tax the top tax writers in the house uh have announced a $78 billion bipartisan deal just Tuesday that was you know just today um actually technically technically it was yesterday but anyway uh so that was January 16th today is January 17th right uh but this is exactly what I'm talking about right you got the tax the child tax credit gives a boost under the uh uh under the agreement increasing the maximum credit per child from $1,600 down up to uh $2,000 through 2025 right so but get this guys so this credit will also be adjusted for inflation in 20 2024 and 2025 um the maximum credit for each child for each taxpayer would be calculated on a per child basis rather than capping the credit at 15 uh percent of the earned income over the $2,500 across the board now here's here's something that I want you guys to look at here so this shift is aiming to ensure that the child tax credit phas in is applied fairly to families with multiple children okay I don't know if you guys remember but during the uh during the uh pandemic you know when they were sending s checks out and stimy checks and all those other things out uh some of these families were getting like $99,000 tax credit or $9,000 tax checks or tax credit checks or $9,000 tax payments however you want to look at it um not exactly sure on the details for 2024 for the 20 23 tax year but the details are going to continue to come out uh and I can't wait to share those with you as soon as we get more updates and details the tax deal would raise the ceiling on the lowincome tax housing tax credit by 12 a half% through 2025 this would allow states to allocate more credits to affordable housing projects uh you know with Rising rents mortgage rates at you know two decade long highs who wouldn't appreciate more more affordable housing projects being funded to theoretically be able to hopefully kind of like lower rent and make uh our our most expensive living expense which is our housing actually hopefully be less expensive in the future right so that's a big deal 16 million kids from low-income families would be better off as a result um and also they're talking about now this is for the entrepreneurs here for the entrepreneurs for the business owners for the side Hustlers if you're getting a$ 1099 uh if you're like an Uber driver a lift driver if you have a a online business if you got a side hustle maybe you do hair uh if you run a landscaping business basically if you work for yourself and you're not getting a W2 but you earn an income this is for you reinstated business deduction so these three business deductions were taken away in the 2017 uh tax cuts and and and jobs act and they would be re rein stored under this particular deal um so the deal would actually push back a current law that requires businesses to deduct research and development costs over a 5year period instead of allowing them to deduct these expenses um of american-based research and development Investments immediately so that's a big deal that's a big deal um it also allows for and this is going to boost this is going to this is going to make businesses want to expand their businesses this would make businesses want to hire more people this would make entrepreneurs want to you know take more risks expand their companies and this creates more jobs this would create more tax revenue for the tax for the government you know so it's really a win-win when you look at it um by the way if you guys uh if you guys appreciate the content if you appreciate being informed hit the like button and subscribe to the channel totally appreciate you guys you guys are awesome uh also there's a carve out for Taiwanese company so so this tax deal will also establish a carve out for Taiwanese companies to prevent double taxation for businesses and workers with a footprint in both the United States and Taiwan which if you think about it you know we got this whole you know concern about whether or not China is going to take over Taiwan and if that happens un United States involvement you know could be a World War III kind of situation which we don't want uh China's made it very very clear that their intent is to take over uh Taiwan and to reestablish Unity between the two nations of course United States is a staunch um you know uh Ally to Taiwan and it doesn't look like the United States is going to be backing down and allowing China to take over Taiwan so um you know I could see why the United States would want to offer some tax relief for taiwan's um or companies that that have uh locations in Taiwan and of course uh there's some tax relief for some disaster victims under the proposed deal victims of wildfires we're talking about you remember the wildfires in Maui uh Hawaii Mau lahina Maui uh over in Hawaii there were wildfires that took place in um multiple parts of the United States I want to say Louisiana had wildfires you guys let me know in the comments if you remember any other states that experienced wildfires um definitely California had a series of wildfires um but get this so and it's just it's not just the wildfires the tax relief for disaster victims under this proposed deal victims of wildfires the north folk southern derailment train wreck accident that took place in East Palestine Ohio would also receive um some tax relief with any other kind of disaster relief payments not counting toward their taxable income so that would be great you know imagine you were affected by you know these these this uh tragedy the train derailment um you get your check and they're not going to tax it you know theoretically so that would definitely be a good thing um also uh so basically so this this bipartisan tax deal could literally be a huge um you know bit of uh prosperity for millions and millions of families who uh hopefully uh haven't found their taxes yet may be able to take advantage of some of this uh some of this goodness so um but so here so t top lawmakers and uh in the Senate and Congress they're making some progress here and this is a good sign uh what I do like though about this is I could have sworn okay so the legislation dubbed the tax relief for American families and workers act for 20124 this is expanding the child tax credit for three years and this is going this would theoretically allow families with multiple children to take advantage of the credit um and so this is this is the part I wanted to to share with you guys uh another part under the bill it would lift the amount to $1,800 for 2023 $1,900 in 2024 and $2,000 in 2025 so um you know this this is this is definitely a plus for a lot of families hope you guys are uh you know paying attention here and uh make sure your tax guys some of you guys I don't know if you use like H&R Block or Turbo Tax or Jackson hu for tax filing but uh you know make sure that they're aware of these different um these these these updates that are coming down the pipeline um but basically here's the here's another thing so tax or file uh lawmakers from both parties have pressed to restore the tax deduction for state and local income taxes the 2017 tax law capped it at $110,000 and it is scheduled to expire in 2025 so we got to keep an eye on that one many members uh from State states with high uh state and local property taxes want to get rid of this cap and reinstate this deduction but of course no agreement on the proposal to include that as a part of the new tax package has been made yet but it is a possibility that they add that in there as well so let me know you guys' thoughts guys uh also um if you made it this far on the video hit the like button for the video check out my previous videos I uh announced yesterday that there were over like 10,000 F well basically there were like 10,000 flights canel as a result of this polar vortex that we're dealing with right now how many of you guys are freezing your butts off like I am uh well I'm not freezing my butt off in the house but if I go outside I I I'll be freezing my butt off but uh basically last night we had hit uh 12 degrees I don't know how cold it is where you guys are at but uh a lot of people are saying that they their their kids school stayed open and the kids were pissed off a lot of the kids as a matter of fact were um my kid was telling me that they signed off a uh petition to uh close the schools because um basically they left you know our our our uh School stayed open so it's like hey why have all of these other schools in the state closed because it was so cold but yet our school stayed open right so there's a big huge petition um those kids ended up having to go to school well technically I could have had my kids stay home but he didn't and he was telling me how few people were even at the school and it just wasn't fair but anyway uh I hope you guys are doing well I hope you're staying warm I hope your uh your power grids are able to handle this higher demand in this in your area for all this uh extra heating uh usage uh I hope you have firewood I hope you have some extra backup batteries maybe fuel for the generators if you need it um but anyway guys uh I hope you enjoyed the content I hope that this was helpful and useful to you uh subscribe like and I will see you guys on the next one 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