The American Families Plan and Your Taxes
May 18, 2021
President Biden recently announced the American Families Plan, a $1.8 trillion proposal to help boost the American economy. The plan unveils many items including several tax provisions and an enforcement proposal affecting businesses, individuals and families.
The information below is a high-level summary on the tax provisions that are contained in the fact sheet released from the White House on April 28, 2021.
Tax increases under the proposed American Families Plan include the following.
Tax breaks under the proposed American Families Plan include extending the Child Tax Credit in the American Rescue Plan Act through 2025 and makes the tax credit fully refundable. The credit provides $3,600 for each child under the age of six and $3,000 for each child age six to 17.
President Biden also laid out a plan for increasing the budget for the IRS to support additional resources at the agency and increase enforcement efforts specifically on large corporations, partnerships and high-net-worth individuals.
Before the proposal can be voted on by Congress, it must first be drafted as legislation and negotiated by the House and Senate. Alternatively, the President could pass the plan through the budget reconciliation process, as he did with the American Rescue Plan Act back in March.
The tax team at Smith & Howard is closely following the American Families Plan and will communicate updates on the plan as they are announced. If you have any questions and would like to contact a member of our tax practice, please complete this contact form.
If you have any questions and would like to connect with a team member please call 404-874-6244 or contact an advisor below.CONTACT AN ADVISOR
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