Parents, big changes could be on the way next year involving your taxes and your refund.
Unless Congress decides to change current tax law, parents who used to receive a $1,000-per-child credit on their taxes, will only get $500 per child.
“It’s really worrying people so the best thing to do is plan accordingly,” CPA Jessica Suellentrop said.
Suellentrop said families can also expect to lose hundreds in the amount they are able to deduct as childcare expenses.
Families with one child were able to take $1,050 off their taxable income.
That could go down to $720, meaning their tax liability would increase $330.
As for families with two or more children, their tax liability could increase $660.
Unfortunately, accountants said these numbers really affect families making $15,000 to $40,000 a year, the people who use the tax credits the most.
“It’d make a big difference for moms trying to decide if they’re going to go back to the work force,” mother Stacey Slaton said.
As a childcare provider herself, Ginny Trotter agrees.
“That would be awful,” Trotter said. “I always wrote my daycare off. I can’t imagine that.”
Accountants said Congress has until the end of next year to make a decision.
It’s important to know what could be on the chopping block so you can plan ahead.