Child Tax Credit Changes Coming? The Extra Standard Deduction, Social Security Tax Increase for 2024

Child Tax Credit Increase: What is Congress Negotiating? | States That Won t Tax Your Death | Social Security Taxes Jump for High Earners Created for {EMAIL} | [Web Version]( January 21, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Youtube]( [Youtube]( [Tax Tips]( [SIGN UP]( ⋅ [WEBSITE]( [] Tax Changes [] [Child Tax Credit Increase: What is Congress Negotiating?]( [Child Tax Credit Increase: What is Congress Negotiating?]( (Getty Images) Congressional lawmakers recently proposed a bipartisan tax framework that includes a new child tax credit (CTC). If approved, the tax package would expand the popular tax credit and benefit around 15 million children in the United States. Lawmakers are pushing to pass the changes to the CTC before Jan. 29, which is when tax season begins. However, there are no guarantees. But if you're curious about [what Congress is discussing and what a new child tax credit could mean for you and your family, keep reading](. [] State Taxes [] [States That Won’t Tax Your Death]( [States That Won t Tax Your Death]( (Getty Images) It is crucial to stay updated about state taxes, even if you are mainly concerned about significant federal tax changes, such as the proposed expanded child tax credit. For instance, although state death taxes are something we may not like to think about, they can be expensive for our loved ones after we pass away. However, if you reside in and have assets in specific states, you might save your heirs some money. (Fortunately, federal death taxes only apply to those who leave behind estates worth millions of dollars.) With that in mind, [here’s a list of states that won’t tax your death](. [It's not too late to open an IRA]( Did you know you can save for retirement at the same time you care for the planet? Open or roll over an IRA with Domini, and you'll get both a tax advantage and help to mitigate climate change too—all of our Funds are fossil fuel-free in accordance with our investment standards. Explore the Domini Impact Equity Fund. [Open a Fossil Free IRA]( [LEARN MORE]( ADVERTISEMENT [] Payroll Taxes [] [Social Security Taxes Jump for High Earners]( [Social Security Taxes Jump for High Earners]( (Getty Images) Social Security tax is taken from your paycheck until your income reaches a specific limit. That is the "Social Security wage base" and represents the maximum amount of earnings subject to Social Security tax. These taxes help pay for the Social Security program, which provides eligible recipients with retirement, disability, and survivor benefits. For 2024, the Social Security Administration announced an increase of 5.2% in the wage base. That means some high-earning taxpayers will pay more taxes this year. [How much more](? Featured Content Sponsored Content from The Kiplinger Tax Letter [Stop Overpaying on Your Taxes.]( Get a [FREE ISSUE]( of The Kiplinger Tax Letter and never pay one cent more than necessary on your taxes, for yourself, your business, or your clients. Then save up to 58% off the cover price to subscribe, and get exclusive special issues such as New Tax Rules This Year, Year-End Tax Planning, or other topics. [CLICK HERE]( [] Taxes in Retirement [] [The Extra Standard Deduction for People Over 65]( You've likely heard about the standard deduction when it comes to taxes, but did you know there is an additional standard deduction available to those aged 65 or older? This tax perk can be especially beneficial for older adults looking to reduce their taxable income and keep more of their hard-earned money in retirement. To take advantage of this tax break, we’ve created this guide to help you understand how the extra standard deduction works. [Read More]( [7 Mistakes to Avoid When Hiring an Advisor]( Working with a financial advisor can be a crucial part of retirement planning. But choosing the wrong one can wreak havoc on your investments. Here are 7 common mistakes to avoid when hiring a financial advisor so you can work towards a more comfortable retirement. [LEARN MORE]( ADVERTISEMENT [] In Case You Missed It [] [Last-Minute Bipartisan Tax Deal Could Help Businesses and Families: What to Know]( A recently announced $78 billion tax framework in Congress could lead to improved tax credits for businesses and families. The proposed Tax Relief for American Families and Workers Act of 2024 would enhance the child tax credit (CTC), low-income housing credit, and R&D expensing. Additionally, if approved, the tax compromise would end the Employee Retention Tax Credit (ERC). If you haven't heard about the last-minute bipartisan tax deal, we break down what you need to know about what’s in it and how it could affect your taxes. [Read More]( [Increase your retirement income – make it last a lifetime]( Income annuities are paying 25%-45% more than last year. By balancing guaranteed income and income-focused investments, you can increase your income, lower your risk and minimize your taxes. We can show you your increase with a complimentary Go2Income plan. [Order Your Plan]( ADVERTISEMENT [] STOP OVERPAYING ON YOUR TAXES [] [STOP OVERPAYING ON YOUR TAXES]( (Getty Images) Get a [FREE ISSUE of The Kiplinger Tax Letter]( and never pay one cent more than necessary on your taxes, for yourself, your business, or your clients. Then [save up to 58% off the cover price]( to subscribe, and get exclusive special issues such as New Tax Rules This Year, Year-End Tax Planning, or other topics. [CLICK HERE]( ABOUT KIPLINGER When we write about money, we get it right. So the decisions you make with your dollars are also right. 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