Congress is still trying to figure out how to agree on appropriations under a budget for fiscal year 2024, which began on Oct. 1, 2023. If agreement is reached, some tax provisions could be included. Some of those being discussed include extending the individual tax provisions from the Tax Cuts and Jobs Act, currently scheduled to expire at the end of 2025; restoring the 100% deduction for research expenses; restoring the enhanced Child Tax Credit; and increasing or eliminating the limit on state and local tax deductions. It is not clear that agreement can be reached on any of this.
In spite of the lack of new tax legislation so far this year, taxpayers and their tax return preparers should have plenty to focus their attention on in preparing 2023 tax returns. It should not be as difficult a year as some of the COVID years involving economic impact payments and advance Child Tax Credit payments. The issues with the Employee Retention Credit, however, remain a lasting vestige of some of the COVID-related tax problems.
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